Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme – Authorities in Rong County, China, recently announced the prosecution of eight people suspected of masterminding the Magic Data Chain (MDC) pyramid scheme. The pyramid is reported to have facilitated transactions worth more than $147 million.
According to a local report, authorities in China’s Rong County, Zigong City, recently prosecuted eight people suspected of coordinating the MDC virtual currency pyramid scheme.
According to the report, the case was handled by the Rong County People’s Procuratorate and took ten months to complete after the MDC’s 12 key members were arrested.
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The MDC pyramid scheme was first cracked in May 2021, according to a report from the Sichuan Provincial Public Security Department. Authorities in Rong County conducted further investigations and discovered that the plan had been in operation since July 2019.
The criminals, according to the investigation, “created a blockchain website of ‘Magic Data chain’ and a virtual currency trading website of ‘XIN Exchange.” The MDC virtual currency network, according to the report, had handled transactions worth over $147 million (1 billion yuan).
Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme – Furthermore, the scheme has 2 million registered members and 200,000 participants throughout 30 Chinese regions. The assets “seized and blocked” by Rong County authorities in 2021 were valued slightly over $4.4 million, according to the report.