The Jingde County People’s Court of Anhui Province in China earlier said that the court has recently completed a case against leaders of a pyramid scheme centering on cryptourrency.
Li, Xiang, Huang and seven others, collegiate Xu, were identified as involved in virtual currency and derivative projects.
They required participants to purchase and hold virtual currency and other assets to obtain membership qualifications, and then organized a hierarchical structure that used the number of downstream participants and the amount of virtual currency purchased as the basis for rebates.
This scheme was designed to lure participants to continue developing new recruits, ultimately defrauding a total of more than 964,300 USDT (equivalent to about 6.39 million Chinese yuan).
The Sentencing
Li, Xiang, Huang and six others faced a trial for their role in the case and were handed a fixed term imprisonment of between 2 to 3 years, suspended jail terms and fines.
This ruling explains the Chinese government’s intent to deal with crackdown of clandestine pyramid schemes involving cryptocurrencies and other legal frauds that target investors.
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Other Crypto Fraud Cases in China
This case is not an isolated incident, as evidenced by the additional news reports included in the original query.
The Chinese authorities’ seizure of 542,000 Ethereum worth $1.3 billion from the PlusToken fraud, as well as the warning about a new Telegram influencer scam, underscores the continued vigilance required to address the various illicit activities emerging in the cryptocurrency space.
These developments underscore the need for heightened scrutiny and collaboration between regulators, law enforcement, and the crypto community to safeguard the integrity of the digital asset ecosystem.
Telegram Influencer Scam Alert
In addition to these high-profile cases, the cybersecurity firm ScamSniffer has issued a new warning about a sophisticated scam targeting cryptocurrency users.
This scam involves fraudsters impersonating well-known crypto influencers on platforms like X, aiming to exploit unsuspecting investors.
The Ongoing Fight Against Crypto Fraud
The sentencing of the crypto pyramid scheme organizers in China, the crackdown on the Nagaland scam in India, and the alert about the Telegram influencer scam collectively underscore the ongoing global effort to combat cryptocurrency-related fraud.
As the digital asset industry continues to evolve, regulatory authorities and security firms remain vigilant in their pursuit of protecting investors and maintaining the integrity of the cryptocurrency ecosystem.
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