Three digital currency traders in China were caught up in a fake crypto MLM scheme, losing thousands of dollars. To recoup the losses, the deceived investors launched another digital currency investment scam, which ended up gathering three times the initial amount lost in the fake digital currency scheme.
Chinese investor lose 100,000 Yuan in fake crypto MLM scheme
As the Public Information Network Security Supervision Bureau recently reported, a Chinese investor known as Yang was deceived in a fake crypto MLM scheme. Yang reportedly lost about $14,000 (100,000 Yuan) to the MLM scammers. In an effort to recoup his losses, Yang teamed up with two other investors to begin their crypto scam.
The trio, who are all victims of the crypto MLM scheme, rolled out a fake crypto investment with a token dubbed “Baiye Chain,” and a mobile app. Through this fake offering, the investors were able to scam 20 persons at least, from different regions in China, including Yancheng, Lianyungang, Huai’an, and so on.
The investors’ operation was brought to notice after the affected people from Lianyungang complained to the local police about the fake “Baiye Chain” investment. The police were able to trace and arrest the three Chinese investors behind the scam. Reportedly, the investors amassed more than 300,000 yuan (nearly $43,000) at that time.
Chinese authorities have been heating up against crypto MLM schemes, and other scams facing the residents. In May, the police halted and arrested about 12 operators of a fraudulent business that claimed to be from Huobi. About millions were lost to the Ponzi scheme. Most recently, Chinese police were able to arrest about 100 persons behind PlusToken scam that defrauded more than $3 billion.