The Yuanbao Branch of the Chifeng City Domestic Security Bureau in Inner Mongolia, China, has achieved a breakthrough by resolving a significant Ponzi scheme involving a cryptocurrency platform.
The platform, implicated in criminal activities related to the Ponzi scheme, utilized cryptocurrencies in its operations. The official Chinese sources did not disclose the name of the cryptocurrency platform.
Based in Beijing, the virtual currency platform operated with a tightly organized structure and employed innovative marketing strategies. At the time of the illicit activities, the platform boasted over 18,000 registered members spanning 13 provinces and cities nationwide, with a total transaction flow surpassing 2 billion yuan ($280 million).
Law enforcement took decisive action by apprehending 30 suspects and freezing nearly 10 million yuan in funds linked to the case. While investigations continue, the main suspects have voluntarily surrendered to the authorities.
It’s worth noting that China has imposed a ban on all crypto assets; however, there remains substantial interest in virtual assets within the country. Many Chinese individuals gain access to crypto platforms through the use of virtual private networks (VPNs).
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