Bitcoin News and Finance
Chinese Authorities Arrest Alleged Masterminds Behind an Online Virtual Currency Pyramid Scheme Skip to main content

Chinese Authorities Arrest Alleged Masterminds Behind an Online Virtual Currency Pyramid Scheme

Chinese Authorities Arrest Alleged Masterminds Behind an Online Virtual Currency Pyramid Scheme

Authorities in China recently announced the arrest of ten suspects they say are behind an online pyramid platform that is thought to have stolen millions of dollars from unsuspecting users. The suspects are accused of using the promise of high returns and a regular income to lure more victims.

A ‘Unicorn in the Field of Global Applications’

Chinese authorities recently said they had arrested ten individuals behind an online platform which they believe to be a pyramid scheme, a regional report from China has said. The report suggests the scammers may have defrauded unsuspecting investors of more than $15 million or 100 million yuan.

According to the report, the arrests of the unnamed suspects followed the completion of a six-month investigation into the activities of the platform. The probe was initiated after authorities reported seeing the initial use of digital currency to implement the pyramid scheme in Shanghai.

One of the probing teams, the Economic Investigation Team of the Shanghai Public Security Bureau (EITSPS), said the masterminds of the pyramid scheme had bolstered their scam claims that they provided “value-added services for virtual currency investment.” The scammers also told users that their project was a “unicorn in the field of global applications.”

the_ad_placement id=”article-middle-content”]

More Than 60,000 Member Accounts Created

However, after completing the investigation, Chinese law enforcement found the online pyramid scheme, which had been established in 2020, had servers abroad. These servers, according to the report, were controlled by the prime criminal suspect known only as “Mou.” Through the so-called blockchain technology-promoting company, the promise of a high return as well regular payouts, Mou and his accomplices were able to lure unsuspecting investors.

Mou is also believed to have created a publicity and promotion team to woo more users to pay membership fees. This team would also establish social media chat groups which they would use to recruit more users to join the scam. Before their arrests, the suspects had successfully developed more than 60,000 member accounts, the report said.

What are your thoughts on this story? Tell us what you think in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory