The police refuse to name the name of the cryptocurrency platform, citing confidentiality, however, they say that its headquarters were located in Beijing. The organization "had a well-coordinated structure and used advanced marketing tactics to attract potential investors."
More than 18,000 participants from 13 provinces were registered on the platform, and the total volume of transactions with crypto assets exceeded 2 billion yuan (about $280 million). The police detained 30 suspects and froze almost 10 million yuan of their assets ($1.4 million). Two more suspects turned themselves in to the authorities.
Trading in digital assets and mining of cryptocurrencies is prohibited in China, but interest in virtual assets is still great. Chinese citizens are trying to access cryptoplatforms using a VPN. According to Reuters, Chinese investors are actively buying up crypto assets due to a decrease in the profitability of the local stock market.
In 2022, the Chinese Supreme Court ruled that any collection of funds in digital currencies would be considered illegal, and such transactions amounted to fraud.