Chinese authorities announced recently the arrest of ten people suspected of being behind an online pyramid scheme that is believed to have stolen millions from innocent users. They are accused of promising high returns and regular income in order to attract more victims.
A ‘Unicorn in the Field of Global Applications’
According to a report in China, Chinese authorities claimed that they have arrested ten people behind an online platform believed to be a pyramid scam. According to the report, scammers could have deceived investors by defrauding them of over $15 million or 100 millions yuan.
According to the report the arrest of the unnamed suspects came after a six month investigation into activities on the platform. After authorities received reports that the first use of digital currency in Shanghai to execute the pyramid scheme was made, the probe began.
One of the probing teams, the Economic Investigation Team of the Shanghai Public Security Bureau (EITSPS), said the masterminds of the pyramid scheme had bolstered their scam claims that they provided “value-added services for virtual currency investment.” The scammers also told users that their project was a “unicorn in the field of global applications.”
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Plus than 60,000. Member accounts created
After completing their investigation, Chinese police discovered that the pyramid scheme had its servers in China. It was established in 2020. These servers, according to the report, were controlled by the prime criminal suspect known only as “Mou.” Through the so-called blockchain technology-promoting company, the promise of a high return as well regular payouts, Mou and his accomplices were able to lure unsuspecting investors.
Mou also is believed to have established a marketing and public relations team to attract more people to join the scam. The team also established social media chat forums that they could use to attract more victims to the scam. According to the report, they had created more than 60,000.
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