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Authorities in China have apprehended the alleged masterminds of an online virtual currency pyramid scheme.

According to a regional report from China, Chinese officials recently announced the arrest of ten people linked to an internet platform that they suspect is a pyramid scheme. The crooks may have duped naïve investors of more than $15 million or 100 million yuan, according to the article.

The arrests of the unnamed offenders came after a six-month probe into the platform’s activities, according to the article. The investigation was launched when police in Shanghai reported seeing the first usage of digital cash to carry out the pyramid scam.

The Shanghai Public Security Bureau’s Economic Investigation Team (EITSPS) said the pyramid scheme’s masterminds had boosted their scam claims that they provided

“value-added services for virtual currency investment.”

Users were also assured that their idea was a “unicorn in the realm of worldwide applications,”

That’s, according to the scammers.

However, after concluding the investigation, Chinese law enforcement discovered that the internet pyramid scam, which was founded in 2020, had servers located in other countries. According to the study, the main criminal suspect known only as “Mou” was in charge of these servers. Mou and his associates were able to entice naïve investors with the so-called blockchain technology-promoting company’s promise of a large return as well as monthly payouts.

Mou is also said to have put together a publicity. Then, and advertising team in order to entice more people to pay membership fees. This group would also create social media chat groups to recruit more people to participate in the scam. According to the report, the offenders had effectively built over 60,000 member accounts before their detention.

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