Chinese police uncovered cryptocurrency scam on $7.9 million – Bits Media

Chizhou City Public Security Bureau reported, that law enforcement authorities detained eight suspects in cryptocurrency fraud.

Anhui Provincial Police confiscated approximately 6 Milln Yuan ($946 000). Authorities are planning to charge the suspects with embezzlement 50 Milln Yuan ($7.9 million).

As the police say, hundreds of investors lost money due to a fraudulent scheme, which allowed attackers to transfer liquidity to an “anonymous pool” and launder without the consent of investors:

"After analysis, carried out by the task force, installed, that this case was a typical case of illegally obtaining cryptocurrency using the blockchain".

The police did not specify, what kind of cryptocurrency project do they consider a fraudulent scheme?. Local blockchain news site Chain Catcher reported, that we are talking about the Gainswap project.

A police investigation was initiated after, how an investor approached the Chizhou Public Security Bureau six months ago, lost cryptocurrency on 590 000 yuan (about $93 000).

Eight people from Guangdong province were detained during the investigation., Sichuan and Hunan were confiscated, the police emphasize, luxury cars and villas worth tens of millions of yuan.

Chinese authorities are actively fighting cryptocurrency fraud. In November 2021 Chinese law enforcement agencies carried out an operation to arrest 31 suspected of organizing the Filecoin pyramid. In October, Zunyi City police detained
130 Human, who are accused of organizing a money laundering scheme through cryptocurrencies worth more than $130 million. IN 2019 Chinese law enforcement agencies shared details of the arrest with the public 27 organizers of the IAC cryptocurrency pyramid.