China authorities detain six individuals in a $300 million cryptocurrency scam.
Six people have been detained by Chinese authorities on suspicion of participating in illegal cryptocurrency transactions totaling 2.94 billion yuan, or almost $300 million.
Chinanews, a local media agency, reported on May 10 that the Public Security Bureau of Panshi, in the northeast Chinese province of Jilin, has taken custody of the suspects. According to the authorities, the people ran an underground bank and exchanged South Korean won and Chinese yuan using cryptocurrency.
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Cryptocurrency scam.
Six people were allegedly involved in the illicit operation, which the authorities said had its basis in South Korea. Police sources state that the perpetrators stole the investors’ money and fled to China after tricking gullible investors during the exchange process.
After the defendants’ accounts showed unusual transaction patterns, law enforcement launched a thorough investigation that resulted in their arrest. During the operation, many bank cards and pieces of equipment were taken by the authorities.
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Frauds around cryptocurrency
The most recent occurrence follows earlier reports of similar transactions in South Korea and coincides with an increase in the frequency of frauds centered around cryptocurrency.
The arrest of scammers who stole $4.1 million from a South Korean person under the pretense of a cryptocurrency investment scheme was reported by crypto.news on March 26.
Read also: Bitcoin Holders and ownership distribution 2024
Efforts at cracking down on cryptocurrency scam
Authorities globally have also enhanced efforts aimed at cracking down on these schemes. For instance, Austrian authorities joined forces with international enforcement agencies to crack down on a bogus investment scheme that led to €6 million in losses for unsuspecting investors.
In a similar reported case last week, U.K. authorities arrested two individuals for leveraging a cloned version of prominent crypto platform blockchain.com to scam investors of $7.1 million.
Read also: Why it’s important for you to invest in bitcoin
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