I still think the Chines prisoner thing was a lie. Phrost has a Honk Kong corporation set up, that he paid to make it look like he hired Chinese prisoners to post. In reality, he paid himself through that corporation. This in turn made Bullshido look like it wasn't making any money, so Phrost got all that tax free because it technically does not exist on paper anymore.
That's the story I'm sticking to anyway!!