Crypto pyramid scheme masterminds arrested in China

The suspects embezzled user funds of 100 million yuan ($15 million)

16.03.2022 - 14:25

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1 min

What’s new? The law enforcers of China have reported the arrest of ten suspects in a cryptocurrency pyramid scheme’s organization. The Economic Investigation Team of the Shanghai Public Security Bureau (EITSPS) stated that the fraudsters created a scheme to deceive investors by promising them high returns and regular payouts. .

Information on the Baidu website

How did events develop? The Shanghai police investigated for six months. The law enforcers found that the network platform was created in June 2020, with a server installed outside the country and controlled by the suspect. Through the promotion, the promise of high profits as well as regular payments, the attackers were able to attract investors. In total, more than 60 000 user accounts and 72 levels of hierarchical relationships were registered.

What awaits the suspects? The court handed down a verdict in the case in the first instance under the law. According to the law, if more than 30 people are involved in an organization and the hierarchy exceeds three levels, the organizer or leader must be prosecuted.

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