Chinese Law Enforcement Uncovers $1.5 Million USDT Fraud Scheme, Arrests and Remands 4 Suspects

In China, four suspects were apprehended for a $1.5 million cryptocurrency fraud plot.

According to a recent report from a Chinese news outlet, four people have been arrested on suspicion of participating in a sophisticated crypto fraud scam. The suspects reportedly planned a massive cryptocurrency scam in collaboration with a foreign fraud organization.

The operation relied on convincing victims to buy Tether USD (USDT) and then transfer the funds to an account under the group’s control. The article said that the total amount of the scam was more than 50 million yuan, which is about $1,565,984.

According to the prosecution team, the international fraud gang recruited victims by encouraging them to invest in stocks through a LINE chat group. Victims were duped into investing in cryptocurrency after they made a few dollars.

The victims were also instructed by Li Nv, Hong Nv, Dai Nan, and Zhang Nan, all of whom were named in the investigation as fake currency dealers, on how to create cryptocurrency wallets.

The scam gang is accused of using numerous techniques to convince victims, once they have received their bought USDT, to move their Tether holdings to a separate crypto wallet. It’s interesting that the persecutors discovered the fraudsters had used phony websites and apps to trick their victims.

Unfortunately, the USDT of the victims ended up in a cryptocurrency wallet operated by the fraudsters. After converting the money they stole from their victims, the four suspected counterfeit currency sellers withdrew it. They also made an effort to conceal the money’s origins.

At least 10 individuals fell for the scam, according to the prosecutor’s probe. The greatest single loss was over TWD 4 million, or around $125,278.

Notably, the prosecution has filed an application with a Chinese District Court, and the court has agreed to hold the four defendants in jail.

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