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China Blockchain Fraud, Bitcoin Pyramid Ponzi Scheme – Police arrested a gang of 10 Members

China Blockchain Fraud China Pyramid Ponzi Scheme Scam
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China Blockchain Fraud – China Police arrested a gang of 10 Members in Block-Chain Fraud. China-Crypto Market is much evolving and largely unregulated. There was a Mandate issued to China’s Ministry last year -2017 to aggressively detect a large number of national pyramid schemes, including some involving CryptoCurrency.

Also, read List of fake ICO and cryptocurrency in China 2018 

China Blockchain Fraud & Scams

Chinese Pyramid Scheme is commonly followed in the Local Market and the problem is rapidly growing. As per the action of Cyber Attack, the Community expressed their concerned and said-

“We will conduct all-round and efficient inspections and dispositions and make great efforts to purify the cyberspace so as to comprehensively promote the establishment of ‘MLM-free network platform’ and ‘MLM-free communities”.

Chinese Scam Again in News

Thus on Wednesday- 29th May, 2018According to news released in China Money Network- designed of an Artificial Intelligence, there the Authorities in China have shut down yet another Block Chain pyramid scheme – this time worth over $46.8 million (RMB 300m.

Earlier in this Month, According to the report, the police in Shenzhen, China arrested six suspects involved in an alleged $48 million (RMB 307 million) Crypto Currency Scam. The local police added and warned the public against the high risks of investing in Blockchain Technology.

The local media source Huashang News says that Police in Jinan- China’s northwestern city of Xi’an found a gang of over ten suspects involved in the pyramid scheme who reportedly established the unnamed e-commerce platform disguised as a Block Chain peer-to-peer platform in 2017 and preyed on vulnerable investors amid a climate of heightened enthusiasm around Block Chain technology.

The Reports cited an investigation on fraudulent schemes pretending to be backed by Crypto Currency and/or Block Chain Technology.

21st Century Pyramid Scheme- Scam

The concept of Pyramid Scheme to run a Business Model is very much simple.

In trading vernacular, Pyramid schemes have always been successful, there never seems to be a shortage of people lured in by the idea of easily doubling, tripling, or quadrupling their money.

The Police Enforcement claim the code that the scheme used a Crypto Currency called Da Tang Coin (DTC) that is linked to DTC Holding – a firm under the suspect’s control and registered in Hong Kong – to allegedly hoax potential members of the pyramid scheme.

The key figures in the scheme, call the fraud as “Business Cults”. Around 10 Million people are involved in Pyramid Scheme.

China Blockchain Fraud China Pyramid Ponzi Scheme Scam

To apparently make the Scheme run thus in various promotional events in multiple cities in the country, the scheme claimed that new members can make 80,000 yuan (roughly $13,000) per day with an initial investment of $480,000 to purchase the DBTC at $0.50 per token.

Since China has banned this Scheme but still pyramid schemes are commonly practiced as “multi-level marketing” (MLM), a system whereby a salesperson earns money not just by selling a company’s goods but also from commissions on sales made by others, whom the first salesperson has recruited.

On surprising speculation made by the Law Enforcement of China, the report further said that the company had touted the potential of DBTC, saying it would be listed on several exchanges such as Shangya, U-Coin, and

Subbotincited as a Chair Person

  • He would eventually adopt the token and promised that the token in several real-life use cases including retail payments, hospitality, and education.
  • These promises of high returns stem from both commissions after developing subsidiary networks and potential trading profit once the token was listed on multiple exchanges

About the author

Michael Williamson

Michael Williamson is a content marketer who formerly worked out of Unbounced's Montreal office. A writer by day and a reader by night, he is loathe to discuss himself in the third persona, but can be persuaded to do so from time to time.


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