Crypto Scammers Who Stole $8 Million Arrested in China

Chizhou Public Security Services said police arrested eight people and froze digital assets worth nearly 6 million yuan ($944,643 at current exchange rates) as part of a cryptocurrency fraud case.

According to Nikkei Asia, hundreds of investors became victims of the rug pull scheme, losing 50 million yuan ($7.9 million). Fraudsters laundered funds through an anonymous pool.

The investigation began when, in June 2021, one of the victims reported a loss of 590,000 yuan. In December, police carried out a series of arrests and confiscated expensive cars and mansions worth tens of millions of yuan from suspects.

The authorities did not specify the name of the project, but the local media said that it was Gainswap.

Earlier, in China, the state-supported Blockchain Services Network (BSN) platform announced their plans to launch an NFT infrastructure separate from cryptocurrencies at the end of January 2022.

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