The police have chosen not to disclose the name of the cryptocurrency platform, citing the need for confidentiality, but have revealed that its headquarters were based in Beijing. This criminal organization possessed a highly coordinated structure and employed sophisticated marketing strategies to entice potential investors.
The platform boasted a registered user base of over 18,000 individuals hailing from 13 different provinces across China. The total value of crypto transactions conducted on the platform exceeded 2 billion yuan (approximately $280 million). So far, authorities have apprehended 30 suspects while also freezing assets worth almost 10 million yuan ($1.4 million). Additionally, two suspects voluntarily surrendered themselves to law enforcement officials.
Despite the ban imposed by China on cryptocurrency trading and mining activities, there remains a substantial interest in virtual assets among Chinese citizens. Many individuals utilize VPNs to gain access to crypto platforms. Chinese investors are reportedly increasingly turning towards cryptocurrencies due to dwindling returns on the domestic stock market, as reported by Reuters.
In 2022, the Supreme Court of China decreed that any pooling of funds involving digital currencies would be deemed illegal, and engaging in such transactions would constitute fraud.