China Busts Blockchain Scam
While blockchain is being hailed as the ultimate disruptor by the great and good of the finance sector, in China it is a boon to con artists.
Small investors in China eager to cash in on the hyperbole around the growing adoption of blockchain found themselves scammed out of $46.8 million. Police in China arrested a gang of ten working a pyramid scheme which touted itself as a blockchain project, «China Money Network» reports.
The gang recruited investors for their scam by offering membership fees, shares and dividends for their non existent blockchain-based peer-to-peer platform.
In order to attract more people, the company highlighted some of the current geopolitical initiatives coming from China's central government, This included leveraging off the One Belt and One Road infrastructure development.
