Despite prohibiting cryptocurrencies such as Bitcoin in Mainland China, the Shaanxi Police have arrested 4 individuals involved in the Cryptocurrency Scam.
Local news agency Baidu reported on July 31 that law enforcement in the Chinese province of Shaanxi had discovered a crypto fraud scheme and apprehended four suspects.
According to the report, the perpetrators defrauded the victim, Wang, of 410,000 Chinese yuan ($56,800).
Complaint and Arrest
On July 16, the victim of the fraud visited the local police station to report that they had lost 410,000 RMB by investing in cryptocurrency online.
Wang claimed that individuals he encountered online persuaded him to invest in cryptocurrency using an application.
The fraudsters reportedly asserted that they knew of a system loophole enabling them to generate assured cryptocurrency profits.
After the complaint, the Criminal Investigation Bureau initiated an investigation into the matter, which succeeded in identifying the suspects through numerous visits and investigations.
In Zhengzhou City, Henan Province, the police apprehended the suspects Zhai and Li on July 23. The apprehension of Wang and Li, the suspects, occurred in Kaifeng City, Henan Province, on July 25.
The case is under further investigation, and the four suspects are behind bars on fraud charges.
Cryptocurrency Ban in China Persists
Mainland China has become one of the most skeptical countries in the world regarding cryptocurrency, as it has implemented numerous prohibitions on various crypto-related activities, such as mining and trading.
In 2021, China implemented its most recent Bitcoin prohibition, which impacted nearly all cryptocurrency transactions. The local authorities have declared an interdepartmental crackdown on cryptocurrency.
Nevertheless, the Chinese government continues to permit the possession of cryptocurrency and safeguards local crypto investors, as cryptocurrency is classified as virtual property protected by the law.
The local police have consistently uncovered unlawful crypto-related operations, as Chinese law enforcement has been actively combating this activity.
The Chinese State Administration of Foreign Exchange uncovered an underground bank in December 2023 that utilized cryptocurrency to provide illicit exchange services.
The scheme operated in 17 provinces and had over 1,000 bank accounts, transferred more than 15.8 billion yuan ($2.2 billion) to purchase cryptocurrency on foreign exchanges, and offered yuan exchange services.
