A major city in China had recently been rocked by a significant cryptocurrency fraud that amounted to over fourteen million dollars. Thankfully the swindle was successfully investigated and eradicated by Chinese law enforcement officers. The massive sum of hundred million dollars in yuan was attained back as well as several expensive vehicles and high-end real estate properties. According to Chinese media outlets, the crypto conmen were swindling the masses since the last year and fished for prospective victims through social message-sharing groups that operate online. The chat groups were anonymous and hence an ideal place to commit such crimes.
The fraud is reported to have taken place by the common form of dishonesty, where greedy crypto-criminals lure unsuspecting victims with the promises of doubling the investment through higher returns. They spread out their messages on chat groups proclaiming to have benefited massively from investing in a specific crypto-currency platform and trading plan. Then they encouraged whoever they could to follow suit and transmit their cryptocurrency to a counterfeit altcoin wallet to receive a token that was double in value. But once it was done, the duped investor will only get a fake internet address and nothing else.
The scammers operated cautiously and only promised eight percent more returns and not too much more, which would have made a potential investor suspicious. And in this way, they stole millions in Ether, Bitcoin, and other altcoins. They were eventually caught due to the extravagance that new money brings and were nabbed them when they tried to set up a center for their illegal activities in a complete building that they sourced. They had duped over a thousand people, and more details of the case are still surfacing.
These kinds of scams and frauds have become rampant with the growing use of crypto-currency and its burgeoning popularity on the trading floor. And it is especially hard to look out for fraudsters who promise good returns since the market volatility of crypto-currencies behaves in such a way that eight percent returns would seem like a reasonable promise any good crypto-currency investor would make. But with more and more usage and experience of dealing with altcoins grows in the common masses, the number of such scams and frauds will greatly diminish. There are always con artists out there who will try to lure you with fake promises. It is up to you to know the real from the fake.