Crackdown on Criminal Syndicate in Hainan Province
In Hainan Province’s Danzhou City, authorities have taken serious action against a criminal syndicate that orchestrated an illegal scheme to solicit public funds, amassing over 10 million yuan. According to reports by BlockBeats News on June 18, the Danzhou City Procuratorate revealed that the gang was charged with the illegal accumulation of public deposits, capitalizing on the appeal of high returns from cryptocurrency investments.
Investigative Findings and Legal Proceedings
After a thorough investigation and subsequent trial, the Danzhou City Court determined that the defendants were guilty of coordinated criminal activity involving the unlawful collection of public finances. They received substantial prison sentences along with financial penalties.
Details of the Operation
In 2023, the gang devised an elaborate plan known as “contract-based crypto trading,” which involved attracting individuals to invest in cryptocurrency under the false promise of guaranteed daily returns of 3% on their investments. To enhance their credibility and reach, they established virtual communities and registered a legitimate-sounding company to promote their services.
The scheme drew in 32 clients, leading to the illegal gathering of significant funds meant for speculative activities on trading platforms. As market conditions turned unfavorable and the value of the cryptocurrencies began to plummet, the gang failed to uphold their promised rebates. This ultimately resulted in the crumbling of their operation.
