#massivescaminChina

A Chinese court has recently sentenced nine individuals involved in a massive telecommunication fraud scheme that targeted Indian citizens, defrauding approximately 66,800 victims of 517 million Indian rupees, equivalent to $6.2 million. The fraudsters operated by creating fabricated online investment platforms and assuming fake identities to lure unsuspecting individuals.

The scheme, orchestrated by a suspect surnamed He, involved setting up an office in Shandong province in May 2023 and recruiting members to carry out the fraudulent activities. The gang members used chat applications to entice Indians with promises of high monthly returns, ranging from 8% to 15%, on relatively small initial investments. To build trust, they created fake social media profiles, often portraying themselves as wealthy and successful Indian women, using geo-tagging to appear local and engaging in relationship-building conversations.

Once the victims invested, the fraudsters used third-party payment platforms to convert the funds into USDT cryptocurrency. These cryptocurrencies were then exchanged for Chinese Renminbi (RMB) or US dollars, with the scammers taking a 15% commission on the transactions. When the deposits exceeded the promised returns, the fraudulent platforms were either shut down, or the victims' funds were frozen by converting the debts into equity within the fake investment schemes.

The court, in its verdict, highlighted the sophisticated nature of the criminal syndicate, noting its professional organization, clear division of labor, and interdependent profit-sharing mechanisms. The sentences handed down to the nine defendants ranged from five years to 14 years and nine months in prison, along with significant fines, based on their roles and hierarchy within the group. The presiding judge emphasized China's intensified crackdown on telecom and online fraud, urging perpetrators to cease such activities and surrender to authorities for potential leniency.