Chinese law enforcement officers arrested a group of scammers who impersonated employees of the Huobi cryptocurrency exchange.
Local news outlet Jinse reports that police detained 12 people. These people, through various cryptographic groups on WeChat, spread calls to invest in some kind of over-the-counter platform.
Law enforcement agencies found that such a platform was used for money laundering. Investors, who invested in this project, lost their savings, the criminals transferred their money to foreign bank accounts. Police detained those involved in the creation of the platform on May 20 in Guangdong.
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It is reported that fraudsters acted since last November, many members of the crypto communities in the social network became their victims.
To inspire confidence in the victims, the scammers introduced themselves as Huobi employees. They promised investors high profitability, and at the first stage of their activity, they increased the amount of money for people who invested in a fake platform.
One of the victims lost 3.1 million yuan. The victims began to seek help from law enforcement in February when many had already lost their money. The investigation is ongoing.