A local court in Heze, Shandong Province, China has sentenced nine Chinese nationals to prison terms ranging from five years to nearly fifteen years for orchestrating a large-scale crypto fraud scheme that targeted over 66,800 Indian victims.
The case, which was heard at the People’s Court of the Heze Economic Development Zone, involved the theft of approximately 517 million Indian rupees (equivalent to around USD $6 million) in the form of USDT, a stablecoin pegged to the U.S. dollar.
The scam, termed the “Killing Foreigners Plate” by authorities, mirrored traditional “pig butchering” scams where fraudsters develop fake romantic or friendly relationships to deceive victims into making financial investments.
Sophisticated Scam Operation Built on Social Engineering and Fake Platforms
The fraud ring, led by He Moutian, set up operations in May 2023 by renting an office in Luxi New District, Heze.
He recruited accomplices including Wang Mou, Wu Mouhua, Jiang Moumou, Sun Mou, and others to establish a coordinated criminal network.
The gang built an entire ecosystem around the scam, including overseas servers, fabricated company credentials, and a fake investment platform named “SENEE”.
Even fake documentation such as trademark certificates and financial licenses to gain the trust of unsuspecting Indian victims.
Each member had a clearly defined role: some trained recruits, others managed chat operations, and a technical team was responsible for platform development and payment processing.
Impersonation and Emotional Manipulation at the Heart of the Fraud
To lure victims, the fraudsters used translation software and chat applications to impersonate Indian women who appeared successful and wealthy.
Through fake photos, backstories, and consistent interaction, they built online relationships with Indian men, eventually persuading them to invest in the fake SENEE fund.
Victims were promised unrealistically high monthly returns of 8% to 15% on relatively small investments.
Once a victim had invested enough money, the fraudsters would shut down the platform or convert investments into fake equity, effectively locking the funds.
The stolen money was then laundered via third-party platforms and converted into USDT, which the scammers quickly cashed out into RMB or USD, taking a 15% cut as personal profit.
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Court Condemns “Professional and Organized” Nature of the Crime
The court emphasized the highly organized nature of the criminal operation, describing it as “professional” and “meticulously coordinated.”
From June 2023 to January 2024, the group managed to defraud tens of thousands of victims within a span of just over seven months.
The presiding judge, Liu Xilei, noted that although this case involved foreign victims, similar tactics are also being used domestically in China.
He warned the public to stay vigilant and skeptical of too-good-to-be-true investment offers, especially those involving anonymous chats or romantic appeals.
Authorities stressed that the government is stepping up its crackdown on telecommunications fraud and urged any individuals involved in similar scams to surrender voluntarily to avoid harsher penalties.
Growing Trend of Global Crypto Scams Raises Alarm
The Eliza case comes amid a wave of similar scams worldwide, underscoring the growing sophistication and danger of crypto fraud.
In Spain, authorities dismantled a €19 million AI-driven crypto scam where fraudsters used deepfake videos of celebrities to promote fake investment schemes.
Six suspects were arrested, and over 200 victims were misled by the fabricated content. Meanwhile, in Australia, the financial regulator ASIC received court approval to shut down 95 companies tied to crypto scams, with losses totaling over $35 million.
These operations often mimic “pig butchering” methods and have targeted more than 1,500 global victims.
With scams becoming increasingly advanced and international in scope, global enforcement agencies are racing to keep up with a rapidly evolving digital crime landscape.
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