Chinese police have arrested eight people and frozen nearly 6 million yuan worth of digital assets ($944,643 at current exchange rates) in a fraud case. This is reported Nikkei Asia.
According to the Public Security Service Chizhou, victims of the scheme rug pull 50 million yuan ($7.9 million) were “hundreds of investors.” Its organizers withdrew funds to an “anonymous pool” without the consent of users in order to launder, the publication claims.
The investigation began after one of the victims reported a loss of 590,000 yuan in June 2021. In December, police carried out a series of arrests during which expensive cars and mansions worth tens of millions of yuan were confiscated from the suspects.
“According to the results of the investigation, it was established that this is a typical case of illegal receipt of virtual currency using blockchain technology,” the law enforcement agency said in a statement.
The authorities did not specify the name of the project. Local media speculated that it was Gainswap.
据 徽省 池州市 公安 消息 消息 近日 池州市 警方 破获 利用 区块链 技术 非法 获取 计算机 系统 系统 货币 数据案 数据案 涉案 价值 约 5000 万元 人民币. 据 链捕 手 查询 查询 涉案 项目 疑似 为 态 态 态 生态 的 Dex 项目 Gainswap 。https://t.co/uhbxNSndKn pic.twitter.com/B6od9jbjTQ
— ChainCatcher 链捕手 (@ChainCatcher_) January 18, 2022
In 2021, scammers stole over $7.7 billion in cryptocurrencies from users, according to Chainalysis. Over a third of this amount came from rug pull schemes.
Recall that in late December, Hong Kong customs arrested two suspects in laundering more than 380 million Hong Kong dollars ($48.7 million) through personal bank accounts and a cryptocurrency exchange.
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