Cryptocurrencies

Swindled, they in turn become crypto-crooks – Cryptocurrencies

Apart from the ICOs that have given many bad guys the savings of honest citizens, there are plenty of other types of cryptocurrency scams. It is therefore common to hear about MLM-based scams involving completely invented cryptocurrencies. While some victims find the courage to denounce the perpetrators, others hide in silence, ashamed of having been duped. In this case, our victims preferred to wear the costume of the scammers in order to recover the funds they lost and more. The scene that takes place in China has been reported by the Security Supervision Bureau’s public information network.


A scam that generated 300,000 yuan in profits

The brain of the scam, Mr. Yang came up with the idea after he himself lost 100,000 yuan (just over $ 14,000) in an MLM cryptocurrency project. After his mishap, the latter therefore decided to set up a fake investment plan to balance your bank account. Associated with two other former victims, he launched a fake mobile application and a token named Baiye Chain. Investors were called upon to finance the development of the new and fake cryptocurrency with promises of immediate interest.

They were able to convince in this way until 20 investors from Lianyungang, Yancheng, Huai’an regions and more. After discovering the deception of which they were victims, the investors of Lianyungang went to the local police to denounce Mr. Yang and his gang. A raid on the premises of the latter enabled the authorities to apprehend them and end the Baiye Chain scam. Analysis of the various documents and other evidence found there revealed that the scheming had enabled them to make more than 300,000 yuan in profit, or nearly $ 43,000.

Baiye Chain, the Chinese MLM scam

Proliferation of scams in the wake of the establishment of CBDCs

In the midst of the CBDC pilot tests, China is seeing an increase in scams around fake cryptocurrency projects. Thus, several cities in the country are struck by the phenomenon where fraudsters pretend to be CBDC test groups, with promises of return on investment. Most of the scams already unmasked, the promised interest started from 10,000 yuan. We have to believe that the announcement by the People’s Bank of China earlier this year that there was no timetable for the official launch of the digital yuan was not followed by everyone.

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This umpteenth story of scams shows how much a large part of the population wants to participate in the rise of cryptocurrencies. If the industry can rejoice in such enthusiasm on their part, it should nevertheless work to get rid of all these fraud initiatives which continue to proliferate.

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