Wednesday, May 29, 2024
HomeLaw & PoliticsChinese authority cracks cryptocurrency pyramid scheme case of worth $16 million

Chinese authority cracks cryptocurrency pyramid scheme case of worth $16 million

The Shanghai Public Security Bureau and the Yangpu Public Security Bureau started a joint investigation on cryptocurrency pyramid schemes. Later, officials shut down an online platform that had stolen roughly $16 million in digital assets from users of the platform in the last few years.

As per reports the company started its illicit activities from June 2020. The latter developed a blockchain technology company to supply customers with crypto services, promising large returns to investors. Mou’s platform also dispersed several promotion awards and marketing efforts in order to attract more users and extend the organisation’s scope. As per the report it has been stated that at some point the company had more than 60,000 active members.

Shanghai authorities discovered suspicious activities from the group over six months ago and launched an investigation. It was discovered that the tokens for sale had no market value and were therefore illegal. As a result, the authorities requested that the Ministry of Public Security conduct a nationwide “cloud operation” against the suspected company.

Ten people linked to the criminal organisation were arrested as a result of the incident. It also revealed that the company had swindled its victims out of 100 million yuan ($15.7 million) during the course of its existence. Shanghai officials praised the investigation, claiming it was the city’s first ever cracked crypto pyramid fraud. Furthermore, they provided locals with advice on how to avoid being deceived in the future.

Despite its opposition to private cryptocurrencies, China is much more welcoming to other aspects of the digital economy, such as CBDCs and the Metaverse.

Shanghai included the latter in its 5-year development plans. Officials in the megalopolis want to stimulate “the implementation of the Metaverse in sectors such as public services, commercial offices, social entertainment, industrial manufacture, production safety, and electronic games,” among other things.

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