The Chinese Government’s relentless effort to eradicate crypto scams has reached a new milestone as local authorities cracked a huge crypto Ponzi scheme case worth $8.46 million XRP Coins. The Chinese police apprehended Seven main suspects while also confiscating a number of items including phones, and hardware.
The bust was contained in a report by one of the largest and most influential media organizations in China, the Xinhua News Agency. Per the report, the activities of an online pyramid scheme known as “Ripple UnionPay Community” were thwarted by men of the security Bureau of Baiyin City, Gansu Province.
Towards the end of March 2021, the crime investigation Brigade got a tip that individuals were suspected of using the Ripple UnionPay Community app to drag other persons into establishing group chats on different social network platforms such as Wechat and QQ with the sole aim of defrauding unsuspecting individuals through an unsustainable Ponzi Scheme.
The operators of the app claim that one can obtain high returns on the App by engaging in community promotion awards with promises aimed at cajoling others into joining by downloading and installing the “Ripple Pay Community Mobile App”. They further encouraged users of the app to purchase Ripple coins, recharge via the app to activate the account to acquire membership status.
It was further disclosed by the police that the gang of which Wang and Zhang happen to be the leader, used another software company to customize the mobile app. The duo pretended to be investment tutors and financial educators, a tactic employed to convince others to join them and invest. Following the raid, the culprits were taken into custody alongside other major suspects, as well as possessions found with them.
In April 2021, the membership level of the Ripple Pay Community pyramid scheme company attained 18 floors with over 47000 followership acquired nationwide and across 30 provinces. The Ripple UnionPay Community app pyramid scheme is currently under deliberation.
The rate of cybercrimes in the country now can not be overemphasized. The Chinese government has previously reported several other crimes one of which is the fraudulent activities bordering on the use of the metaverse as the basis for their crime perpetration amongst other related crimes reported by Cryptomarketsbeat.