Recent reports from Rong County in China claim that eight Chinese nationals were arrested for being behind the Magic Data Chain pyramid scheme. It is believed that the pyramid handled transactions worth more than $147 million.
Virtual Currency Pyramid Scheme
Authorities in China’s Rong County, Zigong City, recently prosecuted eight people accused of orchestrating the MDC virtual currency pyramid scheme, a local report has said. According to the report, the prosecution of the case was handled by the Rong County People’s Procuratorate, and was only carried out some ten months after the arrest of MDC’s 12 core members.
The Sichuan Provincial Public Security Department reported that the MDC pyramid scheme had been cracked initially in May 2021. The scheme was discovered to be in operation since July 2019 by Rong County authorities.
MDC’s 2 Million Registered Members
In the report, authorities said the criminals — who were led by an individual called Yang — had “built a blockchain website of ‘Magic Data chain’ and a virtual currency trading website of ‘XIN Exchange.’” According to the report, the MDC virtual currency platform had handled transactions with a total value of over $147 million (1 billion yuan).
The scheme also had over 2 million members registered and 200,000 participants across 30 Chinese provinces. When authorities in Rong County finally raided MDC in 2021, the assets “seized and frozen” were worth just over $4.4 million, the report said.
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