Chinese police arrested the creators of cryptocurrency fraudulent scheme in which illegally received about $ 13 million from 13,000 people.
According to local media reports Huashang News, the scheme was launched on 28 March this year after several months of preparation, the chief suspect surnamed Zhang, and his three accomplices. In the framework of a police investigation, it was found that this scheme was used cryptocurrency, called Da Tang Coin (DTC), which is related to DTC Holding company under the control of the suspect, was in Hong Kong.
In a variety of promotional events in several cities of the country representatives of the project argued that new members can earn 80,000 yuan (about $ 13,000) per day with an initial investment of $ 480 000 dollars for the purchase of DBTC at a price of 0.5 dollars per token. These promises high income was based on Commission from the development of subsidiary networks and the potential profits once the token appears on multiple exchanges.
To make the project more convincing, the suspects hired a foreigner who acted as Chairman of the DTC Holding and had to create an image of the international blockchain startup. According to China Daily, this man was Eugene Subbotin, who attended the event DTC Holding in Lintong as General Director.
The report also says that the company advertised the potential of DBTC, stating that it falls in the listing of several exchanges such as Shangya, U-Coin and ZB.com. Subbotin also said that the token will eventually be used in real life, including retail payments, hospitality and education.
XI’an police launched an investigation April 5 after receiving complaints from residents that invested in this pyramid. This year, the Ministry of security of China, the Agency that controls police forces in the country, beginning to make greater efforts to combat financial crimes. In January, the Ministry stated that it will continue to struggle with cryptocurrency pyramids.