Authorities in China have apprehended alleged masterminds behind an online virtual currency Pyramid Scheme

Authorities in China have apprehended alleged masterminds behind an online virtual currency Pyramid Scheme
Pyramid scheme

Authorities in China recently announced the arrest of ten people they believe are responsible for an online pyramid scheme that has stolen millions of dollars from unsuspecting users. The suspects are accused of luring more victims with the promise of high returns and a steady income.


In the field of global applications, it’s a ‘Unicorn.’


According to a regional report from China, Chinese authorities recently announced the arrest of ten people linked to an online platform that they believe is a pyramid scheme. 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 came after a six-month investigation into the platform’s activities, according to the report. The investigation was launched after authorities in Shanghai reported seeing the first use of digital currency to carry out the pyramid scheme.


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


Over 60,000 new member accounts have been created.


However, after concluding the investigation, Chinese law enforcement discovered that the online pyramid scheme, which was founded in 2020, had servers located in other countries. According to the report, the main criminal suspect known only as “Mou” was in charge of these servers. Mou and his associates were able to entice unsuspecting investors with the so-called blockchain technology-promoting company’s promise of a high return as well as regular payouts.


Mou is also said to have put together a publicity and promotion team in order to entice more people to pay membership fees. This group would also create social media chat groups to recruit more people to participate in the scam. According to the report, the suspects had successfully developed over 60,000 member accounts before their arrests.


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