China Cracks Down on Crypto Pyramid Scheme, Victims Reimbursed

• Over 10,000 people were lured into the virtual currency pyramid scheme.  
• Chen and his accomplices returned 22.59 million yuan in illegal gains.  
• They were sentenced to three years in prison, and suspended for five years.

Chinese authorities have convicted three ringleaders of a crypto pyramid scheme that defrauded over 10,000 people. On September 18, the Zhongxiang City Procuratorate of Hubei Province confiscated over 22.59 million yuan (roughly $32 million) in illegal profits, and each leader received a three-year prison sentence, suspended for five years, and was fined 350,000 yuan each.

Chen, Ding, and Fu orchestrated the scheme, which deceived victims through a fake virtual currency project that amassed more than 57 million yuan. 

Investor’s Loss Exposes WeChat Scam

The scheme started in late 2021 when the trio created an app promising high returns through virtual currency investments. They heavily promoted the project through social media platforms and offline meetings, luring victims with promises of “guaranteed profits” and easy money.

The breakthrough came after one of the victims, Mr. Wang, invested $5,000 after being drawn into a WeChat g…

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