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HomeCrypto NewsMarket8.46 Million Ripple (XRP) Seized By Authorities In Crackdown On Pyramid Crypto Scheme

8.46 Million Ripple (XRP) Seized By Authorities In Crackdown On Pyramid Crypto Scheme


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Chinese Authorities Crackdown On Pyramid Crypto Scheme And Seizes 8.46 Million Ripple (XRP).

Chinese local authorities have cracked down on a cryptocurrency Ponzi scheme operating in Gansu province. 

Police Busted the Illicit Operation

Local news outlet Xinhua News Agency reports today that the massive crackdown resulted in the arrest of seven-man suspects believed to be the leading operators of the platform. 

The police also confiscated 8.46 million Ripple (XRP) units, worth around $5.4 million. 

Aside from the arrest and seizure of the 8.46 million XRP coins, the police also seized 15 smartphone devices, PCs, and other devices used for the operations. 

The Ponzi scheme known as Ripple UnionPay Community has been widely promoted across various social media platforms like QQ and WeChat. 

The operators, who claim to be affiliated with the Ripple project, promised investors mouthwatering incentives in node dividends, performance bonuses, community promotion rewards, etc. 

Investors are also promised a high ROI when investing in the platform using XRP. However, following an investigation, which started in March 2021, the operators of the platform were headed by one Mr. Wang and Mr. Zang. 

So far, the Ripple UnionPay Community had amassed over 47,000 users from more than 30 provinces, including Gansu, when it launched.  

The platform has about 18 multi-level marketing (MLM) levels investors can strive to reach in a bid to increase their profit. 

At the moment, the suspects have been charged in court and are facing multiple financial-related charges. 

Cryptocurrency Ponzi Scheme Operations

Cryptocurrency-related Ponzi schemes are no different from other platforms that use Fiat as the main payment method. 

The mode of operation for these illicit operators is to lure unsuspecting victims into investing in the platform by promising them mouthwatering rewards. 

The funds invested are recycled within the community, with new users requested to pay for the existing ones. 

However, this form of investment has never been sustainable. The operators of these platforms may either get greedy along the line, or the operation may cease to function when no new member joins the scheme. 

China Crackdown on Crypto

Meanwhile, China last year announced a massive crackdown on crypto-related activities, thus causing crypto companies, including mining firms, to relocate to other cities. 

The unfortunate development caused the price of Bitcoin and other cryptocurrencies to crash beyond expectations

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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