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.
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