Shanghai police have arrested more than ten people in connection with a nearly $16 million ponzi scheme involving cryptocurrencies.
Shanghai police bureau by official WeChat via account March 15 According to the post made on More than ten people linked to a crypto ponzi scheme of approximately $16 million was arrested. In the post, Shanghai police to track down the criminal gang that you’ve been conducting an investigation in different states for over six months place was given. Also that It is the first cryptocurrencies ponzi scheme case to be settled in the city. mentioned.
Police suspect criminals June 2020‘also membership rewards and fixed income promised to establish an online platform that attracts users. Users wishing to become a member are requested to exchange their fiat currencies for platform tokens, but prices of tokens that do not have a market cap are actually controlled by the platform specified. police, that numerous membership awards and with the level coupled encourages users to create new accounts told.
During the service period on the platform, 72 levels hierarchical relationship and membership status 60,000 member accounts created and the schema From 100 million Chinese yuan ($15,680,370) stated to contain more.
State-owned Shanghai newspaper The Paper, scammers adding that the platform is a “unicorn” (young tech company worth over $1 million) in global blockchain applications To introduce the importance of technologies for online and offline lessons reported that they had arranged.
Illegal fundraising through digital assets in China, where crypto scams are still rampant despite industry pressures February per month Supreme Court officially made a crime.