In the Chinese province of Gansu, 8.46 million Ripple (XRP) was seized in a raid on a crypto ponzi operation, and local teams have thwarted an altcoin ponzi scheme. cryptocoin.com We provide details as…
Illegal operation raided by police
According to local media, the giant ponzi operation resulted in the arrest of seven people thought to be the operators of the platform. In addition, the authorities confiscated 8.46 million Ripple (XRP) worth $5.4 million. In addition to 8.46 million XRP, 15 smartphones, PCs and other equipment used in the activities were paired. The Ripple UnionPay Community, a ponzi scam, is heavily organized on social media platforms like QQ and WeChat. Operators claiming to be associated with the Ripple project have offered investors node payouts, performance bonuses, and community promotion rewards, among other methods.
Investors have been promised huge returns when using XRP to invest in the platform. After an investigation that started in March 2021, it was determined that the operators of the platform were two individuals named Wang and Zang. When the Ripple UnionPay Community was founded, it had more than 47,000 users from more than 30 provinces, including Gansu. Investors are encouraged to reach one of the platform’s 18 multi-level marketing (MLM) levels to increase their earnings. The defendants have now appeared in court and are now facing various financial charges.
How ponzi schemes work
Ponzi schemes based on cryptocurrencies are no different from those based on other platforms that use fiat currencies as their primary payment mechanism. The strategy used by these criminals is to persuade victims to invest in the platform by promising them attractive returns. The deposited money is returned to the community and new users are asked to pay for the old ones. On the other hand, the sustainability of such an investment has never been proven. The operators of these platforms may be greedy down the road, or the operation may be shut down if no new members join the program.
China’s crackdown on Bitcoin and altcoins
Meanwhile, China announced a significant restriction on crypto-related activities last year, causing the migration of crypto industries, including mining operations.
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