[2017-01-09]EGD scam cracked down in China 10.9 billion yuan involved

[hl5460]

People’s Daily, the most circulated newspaper in China, published a story on cracking down a virtual currency pyramid scheme under the name of EGD, which involved over 500 thousand members and 10.9 billion RMB. Another EGD clone named “Wanfubi”  was also cracked down with 120,000 registered accounts and 1.2 billion RMB involved. A total of 77 suspects were captured and 840 million RMB (121 million USD) was frozen with these two cases.


http://news.8btc.com/egd-cracked-down-in-china-10-9-billion-yuan-involved

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[23781946]

Wow, Chinese are rich people.

[Lucius]

China is a big country with a large population so to me these numbers are not surprising at all.People want easy money and if you give them something that appears as credible way to make money on easy way they are flying in that like bees to honey.

Chen Lei, official of Xuzhou Department of Public Security, said:

The online shop feature is quite deceiving; people were convinced that they were funding some sort of e-commerce project.” Many victims were unable to tell the difference and still believed that they were participants of a new business model instead of a pyramid scheme.

It say in article that China Ministry of Public Security revealed 2826 pyramid schemes since 2015 so that we can freely say that this business is booming.

https://news.8btc.com/egd-cracked-down-in-china-10-9-billion-yuan-involved

[Arcteryx]

10.9 billion? Even if that is in their currency that is 10,900,000,000 CNY = 1,574,651,384.17USD
so that is alot of money going down in this this pyramid scheme.
Where do those frozen funds go to? The government confiscates that or does it go somewhere else. A detention area? They have holding areas in these police departments where the money that is taken to from drug busts and cases like those crackdowns.
And yes Chinese are known to be notorious for scams occurring because they are really greedy people when there is anything to do with money/wealth because they see it as power like scarface did.
But power and greed for money does corrupt people which this sorry clearly shows is happening in that country.

[Kprawn]

These types of scams are as old as the mountains. I got involved in one of these about 10 years ago and I never realised it, before it was too

late. This one was running more than 4 years, which gave it a bit more legitimacy. { Or so I thought } Bitcoin and ANY other Crypto currency

will only make it easier to take this global and then it will take longer to collapse. {saturation point}  

[chesatochi]

That not cool for the people who use the service and put they hard earned money on this. I imagine they feeling, you think you were on something that works and in the end, you see on the news the leaders got arrested. So the best, always be careful where you put your money and do you due diligence before taking out some money from your pocket.

[hl5460]

China is a big country with a large population so to me these numbers are not surprising at all.People want easy money and if you give them something that appears as credible way to make money on easy way they are flying in that like bees to honey.

Chen Lei, official of Xuzhou Department of Public Security, said:

The online shop feature is quite deceiving; people were convinced that they were funding some sort of e-commerce project.” Many victims were unable to tell the difference and still believed that they were participants of a new business model instead of a pyramid scheme.

It say in article that China Ministry of Public Security revealed 2826 pyramid schemes since 2015 so that we can freely say that this business is booming.

Do you think that's a major driving force for bitcoin?

[hl5460]

10.9 billion? Even if that is in their currency that is 10,900,000,000 CNY = 1,574,651,384.17USD
so that is alot of money going down in this this pyramid scheme.
Where do those frozen funds go to? The government confiscates that or does it go somewhere else. A detention area? They have holding areas in these police departments where the money that is taken to from drug busts and cases like those crackdowns.
And yes Chinese are known to be notorious for scams occurring because they are really greedy people when there is anything to do with money/wealth because they see it as power like scarface did.
But power and greed for money does corrupt people which this sorry clearly shows is happening in that country.

After investigation, the EGD scam managed to amass a total of 10.9 billion yuan, of which about 8 billion was returned as yields to the early participants, 550 million yuan to exchange goods on the e-commerce platform and the rest, 1.5 billion yuan, was squandered by Pei and other high-level heads.

[Lucius]

China is a big country with a large population so to me these numbers are not surprising at all.People want easy money and if you give them something that appears as credible way to make money on easy way they are flying in that like bees to honey.

Chen Lei, official of Xuzhou Department of Public Security, said:

The online shop feature is quite deceiving; people were convinced that they were funding some sort of e-commerce project.” Many victims were unable to tell the difference and still believed that they were participants of a new business model instead of a pyramid scheme.

It say in article that China Ministry of Public Security revealed 2826 pyramid schemes since 2015 so that we can freely say that this business is booming.

Do you think that's a major driving force for bitcoin?

Do you mean on this scam piramid schemes?I think this is not major driving force for BTC but in some way cryptocurrency is helping that such things happen much more and on much easier way then before.Now people can send money almost anonymously using BTC which is good,but scamers count on that when doing this sort of thing.

On the other side China is playing big role in BTC world,we can see that almost all pumps&dumps have something to do with them.But I remember someone write on this forum that major events regarding BTC is happen in China but there is a possibility that some foreign players pulling the strings also.