The Chinese authorities have dismantled a group of suspected fraudsters who claim to be Huobi officers and operate an over-the-counter (OTC) website.
Local media agency Jinse reported that police arrested 12 suspects in Guangdong province on May 20, who are believed to be behind the program after an investigation found that WeChat crypto trading groups have since been infiltrated in November 2019.
The fraudsters persuaded the victims to invest in the fake OTC platform used for money laundering, and then sent the cheated money to accounts abroad.
Fraud committed by WeChat
Local authorities announced that computers, cell phones, bank cards and other items related to the investigation have been confiscated.
The scammers posted their “good news” on WeChat about investing in Bitcoin speculation abroad.
According to one of the victims, named “Mr. A”, he transferred RMB 100,000 to the account announced on the fake platform. The investment had “substantial gains” and almost doubled its capital.
Almost 3.1 million RMB was stolen from a single victim
As with many other similar scams, the false “returns” were the way the scammers persuaded Mr. A to continue investing, and he ended up sending around 3.1 million RMB to different bank accounts.
In February, the victim received a notification from the fake OTC platform that the project had “fallen apart” and had therefore lost money.
The police behind the investigation said the criminals had diverted the money to various bank accounts after announcing the sudden closure of the platform.
Latest cases of crypto-related fraud
Cointelegraph reported in 2019 about fraudsters who claim to be the Japanese online broker Monex Group, owner of Coincheck, to defraud money by phone calls.
In April, a Chicago businessman was sued for allegedly misappropriating more than $ 2 million in cryptocurrency trading funds.