Police in the city of Chifeng in the Chinese province of Inner Mongolia have solved a case related to a cryptocurrency pyramid, investments in which amounted to a total of $280 million.
The police refuse to name the cryptocurrency platform, citing confidentiality, but they say that its headquarters were in Beijing. The organization "had a well-organized structure and used sophisticated marketing tactics to attract potential investors."
More than 18,000 participants from 13 provinces were registered on the platform, and the total volume of transactions with crypto assets exceeded 2 billion yuan (about $280 million). Police detained 30 suspects and froze almost 10 million yuan of their assets ($1.4 million). Two more suspects turned themselves in to authorities.
China has banned trading of digital assets and mining of cryptocurrencies, but there is still great interest in virtual assets. Chinese citizens are trying to access crypto platforms using a VPN. According to Reuters, Chinese investors are actively buying crypto assets due to declining returns on the local stock market.
In 2022, China's Supreme Court ruled that any collection of funds in digital currencies would be considered illegal and such transactions would amount to fraud.
The police refuse to name the cryptocurrency platform, citing confidentiality, but they say that its headquarters were in Beijing. The organization "had a well-organized structure and used sophisticated marketing tactics to attract potential investors."
More than 18,000 participants from 13 provinces were registered on the platform, and the total volume of transactions with crypto assets exceeded 2 billion yuan (about $280 million). Police detained 30 suspects and froze almost 10 million yuan of their assets ($1.4 million). Two more suspects turned themselves in to authorities.
China has banned trading of digital assets and mining of cryptocurrencies, but there is still great interest in virtual assets. Chinese citizens are trying to access crypto platforms using a VPN. According to Reuters, Chinese investors are actively buying crypto assets due to declining returns on the local stock market.
In 2022, China's Supreme Court ruled that any collection of funds in digital currencies would be considered illegal and such transactions would amount to fraud.
