Arrested suspects of fraudulent ICO
The Chinese company Puyin Blockchain Group illegally raised approximately 48.2 million dollars and swindled more than 3,000 people
Through local media it was learned that the police of the city of Shenzhen, in China, arrested six people suspected of having participated in a case of fraud with cryptocurrencies, which managed to collect illegally approximately 48.2 million dollars and swindling more than 3,000 victims.
Puyin Blockchain Group is the name of the company whose founders stole from investors. Apparently, the company raised the money by promising to issue a token, backed by a billion pieces of valuable high-quality red tea, called pu-erh, which is only grown in the Yunnan region of China.
Thus, they offered investors to make an initial offer of currencies (ICO) and open subsidiaries abroad, in addition to guaranteeing attractive profits from the appreciation of the token, which they supposedly would issue. They manipulated the value of the currency and injected the same money that they collected from the investors in the purchase of the token, in order to inflate the price in a matter of months.
At the moment the identity of the detainees is unknown and what will be the procedure in their case.
N. Moncada
Source: CriptoNoticias
Receive this and all our information directly on your cell phone through our channel on Telegram: https://t.me/BitFinanceNews
