Chinese Crypto Investors Orchestrated Digital Heist to Recuperate Lost Crypto

Shine Li  Aug 04, 2020 17:34  UTC 09:34

2 Min Read

China-based crypto investors launched a cryptocurrency scam of their own, after falling prey to a number of crypto schemes themselves.

Defrauded Investors Seeks Vengeance

The targeted investor, dubbed Yang was reported to have created a fake investment scheme, after losing his own digital assets in a cryptocurrency MLM project. Not only did he fail to make a profit, but he lost an equivalent of $100,000 yuan. Following his loss, Yang decided to orchestrate a crypto scam of his own, launching a fake mobile app along with two other crypto investors who were also deceived by crypto scammers. They coordinated and  created a token that ran on the app, dubbed “Baiye Chain.”  

Yang and his accomplices were reported to have built a network mining platform and through it, they solicited users by promising high returns for their Baiye Chain coins. The cybercrime orchestrated by Yang and his affiliates amounted to 20 members, located in the regions of Lianyungang, Yancheng, and Huai’an. 

The crypto investors’ digital scheme generated 300,000 yuan in illegal funds, which translates roughly to $43,000 before the operation was shut down by the Lianyungang Guanyun Network Police. 

Bank of China Races to Generate CBDC

With China’s central bank’s issuing of trial protocols revolving around central bank digital currencies, cybercrime has been on the rise. Though the People’s Bank of China has on many occasions claimed that their CBDC was ready for official use, digital currency electronic payments (DCEP) are still being tested out in China. The Chinese central bank has been actively developing its own digital currency electronic payment system and CBDC in a global race to become the first country with a functional and feasible CBDC. 

With the finance industry working hard at revolutionizing fiat money and adopting digital assets, crypto scammers have resorted to impersonating CBDC test runs to yield digital funds, by promising high returns on mature investments 

Bitcoin Scams Go Rampant on Social Media 

Just recently, Twitter erupted with a huge Bitcoin scam that overtook its platform and seized the verified accounts of many high-profile figures. The scammers operated by using the verified social accounts of celebrities, tech moguls, and politicians to tweet out a message promising a double in Bitcoin revenue if users transferred their Bitcoin funds to a designated wallet address. 


Image source: Shutterstock

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