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The Chinese police are mining a $ 14 million cryptocurrency fraud

July 10, 2020

The Chinese authorities have mined a major crypto fraud in Wenzhou. The program raised more than 100 million yuan ($ 14.31 million), which were confiscated along with several luxury cars and villas.

According to Toutiao The group has been in operation since 2019 and primarily searched for victims via Telegram’s chat groups. including one named “Huobi Global Moving Brick Arbitrage HT Chinese Group Community”.

ETH, BTC and USDT were stolen from their victims

The report shows that The fraudsters pretended to be investors who had benefited from an alleged “investment program”.

The Chinese police are mining a $ 14 million cryptocurrency fraudThe Chinese police are mining a $ 14 million cryptocurrency fraud

The fraudsters told their victims that all they had to do was send their cryptocurrencies to a fake Huobi wallet address, and the “investor” would receive a larger amount in Huobi Token (HT). Instead, they received a fake HT link.

Mo Li, Head of Marketing at HashKey Hub, said through a tweet, that the Chinese police confiscated “tens of thousands” of Ether (ETH), Bitcoin (BTC) and Tether (USDT).

Empty promises

The scammers convinced their victims that the system would guarantee them an 8% return.

The local media commented on this The group was known to frequent bars and nightclubs, where they usually spent the stolen money. They reportedly rented presidential suites in hotels when traveling in China, and even rented large office buildings to set up headquarters for their illegal efforts.

According to the local police More than 1,300 people said they were cheated by the program. The investigation is ongoing.

Chinese authorities On May 21, they also dismantled a group of suspected fraudsters who claimed to be officials of the Huobi Exchange operating an over-the-counter (OTC) website.

Police arrested 12 suspects in Guangdong province who were allegedly behind the program after an investigation found that cryptocurrency trading groups had been infiltrated on WeChat since November 2019.