China’s Police Arrested Crypto Pyramid Founders
April 19, 2018
Xi'An city police has arrested the founders of crypto scheme that is alleged to be a financial pyramid. They are supposed to have embezzled 86 mln yuan (about $13 mln) from 13,000 of citizens.
As the local Huashang News agency reports, the main suspect with surname Zheng together with three accomplices has launched the scheme on March 28 after months-long preparations.
Главным элементом схемы являлась Da Tang Coin (DTC) was the primary component of the scheme which was used by the founders to fool investors. For instance, the participants were promised daily revenue of #13,000 if they acquire DTC to the tune of $480,000. The investors were told they would receive commissions from token transactions and its cost growth after coming to popular exchanges.
Note that for more credence the initiators employed a representative of European ethnicity who presented himself to be the head of DTC Holding allegedly being the project’s parent company. Thus the founders wanted to make the company seem to be an international blockchain start-up.
The company came into police’s notice after a number of complaints coming from the citizens who got involved into it. Note that it is not the first time when the China’s police takes measures on people's complaints about crypto projects. Last week law enforcement bodies have halted blockchain conference in Shanghai as its participants allegedly included the founders of dingy ICO.