Lin Zulian was elected head of Wukan in rare open polls after residents expelled local officials in a mass 2011 uprising, drawing worldwide attention.
He was detained on Friday and admitted to taking bribes in a video recorded while he was under interrogation and released by prosecutors, the state-run China News Service reported.
"Due to my lack of understanding of law, in many projects related to people's livelihoods... And in some collective purchases I took huge kickbacks," it quoted Lin as saying.
A Wukan resident told AFP Saturday that a large number of police were present in the village to head off protests calling for Lin's release.
She said that before he was detained Lin had planned to lead renewed demonstrations about the land-grab issues which prompted protests in 2011, and which remain unresolved.
The same resident said Tuesday she could not comment further because she was "under surveillance".
Despite official efforts, dozens marched in front of ranks of security officers over the weekend, waving red flags and protesting Lin's innocence, videos posted online showed.
But when a protest leader died in police custody, villagers took their demonstration a step further, barricading roads leading into Wukan, and effectively expelling security forces for more than a week.
Communist Party authorities then unexpectedly backed down and promised rare concessions, including pledges to investigate the land dispute and allow village polls to be held in an open manner - a first in Wukan.
