Chinese authorities arrest six suspects in $300m crypto fraud case

Authorities in China have arrested six individuals suspected of engaging in illicit cryptocurrency transactions amounting to 2.94 billion yuan — worth roughly $300 million.

According to a May 10 report by local media outlet Chinanews, the suspects were taken into custody by The Public Security Bureau of Panshi in the Northeast Chinese province of Jilin. The authorities claim the individuals operated an underground bank, utilizing cryptocurrencies to exchange Chinese yuan and South Korean won.

The illegal operation, which authorities claim was based in South Korea, allegedly involved six individuals. According to police reports, the suspects deceived unsuspecting investors during the exchange process and fled with their funds to China.

Law enforcement became aware of suspicious transaction patterns involving the suspects’ accounts, prompting an extensive investigation that led to their arrest. Authorities seized numerous bank cards and equipment during the operation.

The latest incident comes on the back of a growing prevalence of crypto-focused scams, and follows previous reports of such dealings in South Korea. On March 26, crypto.news detailed the arrest of fraudsters who swindled $4.1 million from a South Korean citizen under the guise of a crypto investment scheme. 

Remarkably, authorities globally have also enhanced efforts aimed at cracking down on these schemes. For instance, Austrian authorities joined forces with international enforcement agencies to crack down on a bogus investment scheme that led to €6 million in losses for unsuspecting investors.

In a similar reported case last week, U.K. authorities arrested two individuals for leveraging a cloned version of prominent crypto platform blockchain.com to scam investors of $7.1 million.