Deceived Crypto Investors Launched Their Own Scam to Recoup Losses

Chinese police have reportedly arrested a group of scammers who launched a faux crypto scheme to recoup their losses after being defrauded by a number of different crypto-related cons themselves.

According to an article from the Public Information Network Security Supervision Bureau posted on WeChat earlier today, an investor named Yang created a fake investment scheme after losing around 100,000 yuan (over $14,000) to a crypto MLM project. 

After teaming up with two other investors who had similarly been deceived by crypto scammers, Yang launched a fake mobile app and a token called “Baiye Chain”. Their operation reportedly amassed more than 20 members in Lianyungang, Yancheng, Huai’an and other regions.

After deceived investors from Lianyungang reported “Baiye Chain” to local police, the authorities traced down and raided the company’s office. They arrested Yang and his companions, who had reportedly made over 300,000 yuan (almost $43,000) in profits by that time. 

Scams intensify as CBDC rollout looms

As reported by Cointelegraph, Chinese crypto scams have intensified against the backdrop of CBDC pilot tests being carried out in several local cities. Fraudsters are now impersonating “CBDC test” groups, promising high returns on initial investments, which generally start around 10,000 yuan ($1430).

Earlier this year, the People’s Bank of China clarified that there is still “no timetable” on a formal digital yuan launch.