Police in Shanghai, China, have successfully dismantled a cryptocurrency fraud ring that defrauded victims of thousands of dollars by operating fake trading platforms. Yangpu District police arrested 16 people connected to the scam after a comprehensive investigation.
The investigation revealed that the gang, led by individuals identified as Yang and Yu, infiltrated various cryptocurrency investment chat groups posing as “investment masters.” Their strategy involved directing unsuspecting individuals to a fake cryptocurrency contract trading platform they had created.
Once victims were lured onto the platform, the scammers exploited their desire to “make money fast.” They convinced victims to make multiple trades, earning high fees in the process. Other manipulations included convincing victims to increase their investments by citing a “profit and loss ratio” mechanism. This tactic led victims to believe that their losses were due to poor market decisions rather than the fraudulent platform, allowing the gang to siphon off more funds.
After their arrest, the suspects confessed to the charges. Yangpu police have since placed all 16 people under mandatory criminal measures on suspicion of fraud. The case is under further investigation, authorities said.
*This is not investment advice.
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