Chinese Authorities Arrest Alleged Masterminds Behind an Online Virtual Currency Pyramid Scheme – Chinese officials recently reported the arrest of 10 people tied to an internet platform which they suspect is a pyramid scheme, according to a regional report from China.
The scammers may have duped unsuspecting investors of more than $15 million or 100 million yuan, according to the report.
The arrests of the unnamed offenders came after a six-month probe into the platform’s activities. When authorities in Shanghai reported seeing the first use of digital cash in a pyramid scheme, the investigation was initiated.
The Shanghai Public Security Bureau’s Economic Investigation Team said the pyramid scheme’s masterminds had boosted their scam claims that they provided “value-added services for virtual currency investment.
“According to the scammers, users were also told that their concept was a “unicorn in the domain of worldwide applications.”
However, after the investigation was completed, Chinese authorities learned that the internet pyramid scheme, which began in 2020, had servers in several locations. The major criminal suspect, known only as “Mou,” was in command of these servers, according to the report.
Chinese Authorities Arrest Alleged Masterminds Behind an Online Virtual Currency Pyramid Scheme – Mou and his associates were able to entice unsuspecting investors with the so-called blockchain technology-promoting company’s promise of a large return as well as monthly payouts.
Mou is also said to have put together a publicity and advertising team in order to entice more people to pay membership fees. This organization would also form social media chat groups in order to recruit more people to join the scam.
The perpetrators had effectively built more than 60,000 member accounts before their apprehension, according to the report.