Bitcoin

Chinese investors decided to start their own cryptocurrency fraud after being cheated themselves

The Chinese police have apparently arrested a group of fraudsters who have introduced a fake cryptocurrency scheme to offset their losses after being cheated by various cryptocurrency scams.

According to an article by Security Inspectorate for Public Information Networks, released today on WeChat, an investor called Yang created a bogus investment program after losing around 100,000 yuan (over $ 14,000) in a cryptocurrency MLM (multi-level marketing) project.

After teaming up with two other investors who were similarly defrauded by cryptocurrency fraudsters, Yang released a fake mobile app and token called “Baiye Chain”. His operation has been reported to have accumulated more than 20 members in Lianyungang, Yancheng, Huai’an and other regions.

Chinese investors decided to start their own cryptocurrency fraud after being cheated themselves
Chinese investors decided to start their own cryptocurrency fraud after being cheated themselves

After Lianyungang, investors cheated They reported “Baiye chain” to the local police. The authorities searched and ransacked the company’s office. Yang and his companions have been arrested who should By then, they had made more than 300,000 yuan (nearly $ 43,000) in profit.

Fraud increases as the CBDC launch approaches

As reported by Cointelegraph, Cryptocurrency fraud in China has increased in connection with CBDC tests that are being carried out in various cities. Fraudsters are now posing as “CBDC-Test” groups that promise high returns on initial investments, They usually start around 10,000 yuan (USD 1,430).

Earlier this year, the People’s Bank of China clarified that “there is still no timetable” for the formal introduction of the digital yuan.

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