Deceived Chinese crypto investors organised their own scam

Three Chinese residents lost money after failed investments in dubious cryptocurrency projects. To recoup the losses, they organised their own fraudulent scheme, according to Cointelegraph, citing a statement from the Public Information Network Security Oversight Service.

According to the agency, an investor named Yang lost about 100,000 yuan (over $14,000) invested in a project based on a multi-level marketing model. Joining with two other investors who were also victims of the scammers, he launched his own fake project Baiye Chain and a related mobile application.

During its operation it attracted more than 20 participants to the project, who together invested more than 300,000 yuan (about $43,000). After losing this money, the investors turned to the police, after which Yang and his partners were arrested.

In July, reports emerged of a group of people involved in fraudulent promotion of Cardano cryptocurrency in China.

Subscribe to ForkLog news on Twitter!