Chinese Police Bust $47 Million Purported Blockchain Pyramid Scheme

2018/5/29 16:45:50

Last week, a two-year investigation into a massive multi-level marketing (MLM) scheme involving ‘Weika Coin’, Chinese for OneCoin, culminated in nearly 120 arrests and 98 prosecutions into an estimated $2.3 billion domestic OneCoin operation. The investigation and subsequent takedown was the largest MLM scheme ever seen in China’s Hunan province, investigators claimed.


By Samburaj Das for CCN, MAY 29, 2018 13:29


Chinese law enforcement has dismantled an RMB300 million pyramid scheme purporting to be blockchain project in yet another crackdown on faux crypto-based fraud.


A gang of over ten suspects involved in the pyramid scheme has been arrested by police in Jinan, the capital city of the Shangdong province in eastern China according to a China Money Network report. The accused reportedly established the unnamed e-commerce platform disguised as a blockchain peer-to-peer platform in 2017 and preyed on vulnerable investors amid a climate of heightened enthusiasm around blockchain technology.


The promoters of the scheme also used buzzwords used by the Chinese government in addressing and acknowledging the decentralized technology, claiming to be a “blockchain” and “big data” company with significant potential for growth. Other terms used include “Western Development”, “Poverty Alleviation” and “One Belt and One Road”, the report revealed.


[…] ... lockchain-pyramid-scheme/




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