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Chinese Authorities Crack Down on $280 Million Cryptocurrency Ponzi Scheme. 🇨🇳👮🏻♂️
In a significant breakthrough, the Yuanbao Branch of Chifeng City Domestic Security Bureau in Inner Mongolia, China, has successfully dismantled a major cryptocurrency Ponzi scheme. Operating from Beijing, the undisclosed platform employed sophisticated organizational structures and innovative marketing tactics, raising suspicions of criminal activities involving cryptocurrencies.
With operations spanning 13 provinces and cities, the platform boasted over 18,000 registered members. The total transaction flow surpassed 2 billion yuan ($280 million), revealing the scale of the illicit activities. The primary focus of the scheme was a classic Ponzi structure.
Chinese law enforcement swiftly responded, arresting 30 suspects associated with the cryptocurrency platform. Additionally, they froze nearly 10 million yuan linked to the case. Ongoing investigations are in progress, with two main suspects voluntarily surrendering to authorities.
This case unfolds against the backdrop of China's existing ban on cryptocurrency assets. Despite the ban, the allure of virtual assets persists, leading many Chinese citizens to access crypto platforms through VPNs.
The crackdown on this sizable Ponzi scheme highlights the authorities' commitment to combating illegal activities within the cryptocurrency space. As the investigation unfolds, it serves as a stark reminder of the challenges posed by the intersection of financial technology and criminal enterprises.
