Chinese authorities have arrested a group of scammers believed to be employees of the Huobi OTC exchange.

illustration

According to a local media report JinseOn May 20, police arrested 12 suspects in Guangdong province who were believed to be behind the scheme after an investigation found that crypto trading groups on the WeChat app had been compromised.

Fraudsters persuaded victims to invest in a fake OTC platform used for money laundering and then transfer the fraudulent funds to offshore accounts.

WeChat scam

Local authorities said they had confiscated computers, cell phones, bank cards and other items related to the investigation.

Scammers have posted on WeChat about their “unrequited rich” Bitcoin investment opportunities.

Fake Huobi OTC floor screen.

According to one of the victims named Mr. A, he transferred 100,000 RMB (about 327 million VND) to the account advertised on the fake platform, the reported fake profit almost doubled the capital.

Victims lost nearly 3.1 million yuan

As with many other similar scams, the fraudsters persuaded Mr. A. to keep investing through the fake profits and in the end he deposited around 3.1 million RMB in various bank accounts.

In February, the victim received a notification from the fake OTC platform that the project had gone bankrupt and his money was gone.

Police investigating China said criminals transferred money to various bank accounts following the announcement of the sudden shutdown.

Disclaimer of liability: This information is provided as a personal blog, not general information or investment advice. We are not responsible for your investment decisions.

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