Chinese Police Cracked a $16 Million Crypto Pyramid Scheme: Report

A joint investigation was conducted by the Yangpu Public Security Bureau (Shanghai Public Security Bureau) and the Yangpu Public Security Bureau (Yangpu Public Security Bureau) into pyramid schemes that use cryptocurrencies. Soon after, authorities busted an online platform that had stolen nearly $16 million worth of digital assets from its victims over many years.

Shanghai’s First Cracked Crypto Pyramid Scheme

A local report states that the group began illegal activities in June 2020 and that its leader was Mou, a criminal suspect.

This company was established to offer crypto services to customers. It promised investors high returns. Mou’s platform distributed many marketing awards and promotional prizes to attract more users. The company was believed to have had approximately 60,000 members at one time.

The Shanghai police discovered suspicious activity by the group six months ago and launched an extensive investigation. The police discovered that the tokens offered for sale were illegal and had no market value. The authorities requested the Ministry of Public Security launch a nationwide “cloud operations” against the suspect firm.

Ten people were arrested by the police in connection with the criminal entity. The police also discovered that the company had taken 100 million yuan ($15.7million) from its victims over its lifetime. Officials from Shanghai praised the investigation, claiming that this was the first crack in the history city’s crypto pyramid scheme. They also gave locals tips on how to avoid being conned again in future cases.

“The public must be more aware of the dangers involved in pyramid schemes and should resist them. The Shanghai Public Security Economic Investigation Department will continue to fight economic crimes that threaten the legitimate interests and rights of citizens and effectively protect consumers’ legitimate rights.

Shanghai Explores The Metaverse

China has a negative stance on private cryptocurrency, but it is more open to other niches in the digital sector, such as CBDCs or the Metaverse.

According to CryptoPotato, Shanghai has included the latter in its five-year development plans. The megalopolis officials want to promote “the application of Metaverse in areas like public services, business offices and social entertainment.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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