A crypto scam was exposed in China, and four people were arrested.
A crypto scam was exposed in China, and four people were arrested Despite China’s stringent ban on cryptocurrency, crypto investment frauds continue to emerge. On July 31, 2024, Baidu, a local news source, reported that law enforcement in Shaanxi had broken a large crypto fraud operation, detaining four people.
Police bust a big cryptocurrency scam in China. The victim, Wang, was duped out of 410,000 Chinese yuan ($56,800). Wang filed a lawsuit on July 16, alleging that he was misled into investing in cryptocurrencies via an app by people he met online. These crooks claimed to have identified a loophole that guaranteed cryptocurrency gains. Wang was persuaded by their guarantees and invested his money, only to later discover that it was a hoax.
After receiving Wang’s complaint, the Criminal Investigation Bureau opened an investigation. They identified the culprits after multiple visits and comprehensive investigations. On July 23, police apprehended two of the suspects, Zhai and Li, in Zhengzhou City, Henan province. Two days later, on July 25, they apprehended the other two suspects, also called Wang and Li, in four people are now in custody and face fraud charges as the investigation proceeds.
China is notorious for its severe attitude on cryptocurrencies, having enforced several bans on activities such as trading and mining. The most current restriction, implemented in 2021, effectively prohibited practically all cryptocurrency transactions. Despite this, the Chinese government allows cryptocurrency ownership and recognises it as legal virtual property. This means that, while trading and mining are forbidden, people can still own and use bitcoins.
Illegal crypto activity in China.
Chinese authorities continue to tighten down on unlawful cryptocurrency activity. Law enforcement agencies throughout the country has been actively investigating and destroying different cryptocurrency-related scam activities. For example, in December 2023, the State Administration of Foreign Exchange discovered an underground bank that used cryptocurrency to facilitate unlawful exchanges.
This enormous operation spanned 17 provinces and involved more than 1,000 bank accounts. It sent 15.8 billion yuan ($2.2 billion) to buy cryptocurrency on foreign markets and offer yuan exchange services.
The crackdown on such practices emphasises the persistent hazards connected with cryptocurrency investments, particularly in areas with stringent restrictions. Investors are encouraged to exercise great caution and perform full investigation before engaging in any crypto-related activities, including in countries. Where certain characteristics of cryptocurrencies are permitted.
China’s continued attempts to combat crypto-related fraud show the enduring vulnerabilities in the digital currency world, even in jurisdictions with strict rules. The scenario in China serves as a warning that, while Bitcoin might provide profitable opportunities, it also carries considerable hazards, especially in settings where regulatory procedures are strict but not failsafe.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : Todayq News