Police in China seize $ 15 million from fraudsters distributing fake Huobi tokens
Chinese police have seized over $ 15 million in cryptocurrency from alleged operators of the fraudulent token scheme. About This writes CoinDesk with the link on the statement of the Ministry of Public Security of China.
According to the publication, 10 suspects were arrested in Wenzhou City. This is the first confirmed case in China of fraudsters using smart contracts to deceive their victims with fake cryptocurrency..
Initially, one of the victims, under the name of Lee, announced the fraud in April. He said he joined a Telegram group called Huobi HT China Global Arbitration Community. The organizers claimed that they could issue HT tokens using their smart contract, which allegedly made it possible to earn money on arbitrage with a yield of 8%.
“In a nutshell, you send an ETH unit to the specified address and receive 60 HT. You can then sell them to make money on the difference, ”Lee explained..
He transferred 10 ETH and received 600 HT, but these tokens turned out to be fake and could not be listed on the exchange for sale. Then Lee decided to go to the police. They stated that the suspects created dozens of similar groups with more than 10,000 fake accounts so that potential victims believe in the usefulness of the opportunity offered to them..
The attackers attracted tens of thousands of ETH, which they spent on leading a luxurious lifestyle. The seized assets are represented by bitcoin, ether and stablecoin Tether. In addition, the villas and cars of Ferrari and McLaren were confiscated from the scammers..
The police noted that this is a new type of crime in China, but did not specify how exactly they managed to get on the trail of criminals. In recent months, Chinese law enforcement officials have significantly improved their ability to track blockchain transactions related to illegal activities, including online gambling, money laundering and economic fraud. Many OTC traders’ bank accounts that may have come into contact with criminal assets have recently been blocked..
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