Chinese law enforcement agencies have carried out an operation to detain 31 suspects in the organization of a fraudulent pyramid. They lured investors with the promise of profit from Filecoin mining.
The operation was carried out by the police in Xuzhou City, while the suspects were arrested in various cities of the Middle Kingdom, including Shanghai, Shenzhen and Wuhan. The total amount of damage caused by the “mining pyramid” amounted to more than $ 62 million. After the arrest and searches, the police confiscated various crypto assets from the criminals, including ETH, USDT and FIL.
The organizers promoted the pyramid under the guise of a partnership with the company IPFSUnion, which produces equipment for Filecoin mining. They collected money to buy mining equipment from the manufacturer, but did not make any purchases.
It is not yet clear whether among those arrested are IPFSUnion employees or representatives of distributors. In his a statement company representatives stressed that they cooperate with the police and are not associated with the organizers of the fraudulent schemes.
In early October, more than 130 people were arrested in China on charges of organizing a massive money laundering scheme through cryptocurrencies worth over $ 130 million.
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