CHINA (OBSERVATORY) – The police of the Chinese province of Shaanxi detained nine people, opening a criminal scam with a crypto currency of 86 million yuan (13 million dollars), the Central Television of China.
The victims of fraud in less than three weeks were about 13 thousand people – those who believed in promises of scammers about the return of large sums of money as a result of joining the crypto currency pyramid. The scam affected people in 31 provinces of the country.
Organizers of the fraudulent scheme from March 28 at various events throughout the country offered credulous investors to buy Datang Coin (DBTC) crypto currency.
The initial contribution was 3 million yuan (about 480 thousand dollars), in this case, scammers promised that investors will be able to earn up to 80,000 yuan (13 thousand dollars) per day.
The scammers acted so convincingly that on March 20, the China Daily newspaper wrote an article about the “launch of the DBTC crypto currency launch ceremony” in Xi’an.
During the investigation it was found out that this crypto currency never existed. Scammers paid 30,000 yuan (about 4.8 thousand dollars) to a foreign citizen, so that he pretends to be the head of a dummy shell company allegedly located in Hong Kong. The exact name and citizenship of the foreign “head of the company” is unknown.
As a result of a special operation carried out last weekend, law enforcement authorities in Xi’an city detained and froze 42 bank accounts with 86 million yuan.