A trio of crypto traders who were victims of an MLM scheme implemented a fake crypto investment scheme with a Baiye Chain token and a mobile app. Due to this fake offer, they were able to deceive at least 20 people.
Chinese authorities advocate against fraud.
Three digital currency traders in China fell into the trap of a crypto scheme, losing thousands of dollars. To make up for the losses, the defrauded depositors launched their digital currency investment Scam, which eventually collected three times the original amount lost in the fictitious scheme.
This became known after the affected residents of Lianyungang appealed to the local police with a complaint about fake investments. The police were able to track down and arrest three Chinese citizens behind the fraud. They reportedly collected more than 300,000 yuan (almost 43,000 US dollars) at the time.
Chinese authorities have taken up arms against MLM crypto schemes and other scams that residents face. In may, police stopped and arrested about 12 fraudulent business operators who claimed to be involved in Huobi. It is reported that a great deal of money was lost due to the ponzi scheme. Most recently, Chinese police managed to arrest about 100 people for the PlusToken Scam, which defrauded investors of more than $ 3 billion.