The People’s Court of Heze Economic Development Zone in Shandong Province, presided by Judge Liu Xilei, has cracked down on a $6.2M USDT fraud ring that targeted around 66,800 Indians. The court also sentenced nine Chinese fraudsters to prison terms ranging from five to fourteen years.
The country’s authorities dismantled the transactional fraud ring that targeted Indian nationals via a crypto-fueled telecommunication scam involving fake investment platforms, fabricated identities, and promises of high returns. The findings noted that the defendants formed a sophisticated criminal syndicate marked by professional organization, precise division of tasks, and profit-sharing mechanisms.
Chinese court dismantles crypto fraud group targeting Indians
JUST IN: CHINA JAILS 9 FOR $6M USDT SCAM TARGETING INDIANS
The People’s Court of Heze Economic Development Zone has taken down a fraud ring of nine Chinese individuals and sentenced them to prison terms ranging from five years to 14 years and nine months. The group was dismantled for targeting tens of thousands of Indian nationals and orchestrating a $6 million crypto scam.
The court noted that the scam involved fake investment platforms, fabricated identities, and promises of high returns. The authorities also revealed that they fined the group in addition to their prison sentences.
The Chinese authorities believe the scam ran for over a year, beginning in May 2023. Court documents showed that He Mountain was at the center of the operation, where he allegedly rented office space in Heze’s Luxi New District and recruited a team to operate the fraud.
The findings also highlighted that the group posed as affluent Indian women on chat apps, where they forged personal relationships with Indian men to build trust. After victims got emotionally invested, they were directed to a sham investment platform dubbed “SENEE.” The platform promised the victims monthly returns of 8 to 15% on deposits as low as 1,000 rupees.
“I met an Indian on a chat app and learned about the SENEE online investment platform. I communicated with customers through the chat app, using the bait of high returns of 8% to 15% for investing 1,000 rupees a month to attract Indians to invest money on the platform.”
-He Mountain.
Court documents also revealed that scammers would either shut down the platform or falsely convert customers’ holdings into equity shares when investors attempted to withdraw their funds. He mentioned that “when deposits surpassed the promised returns, the scam team would shut down the platform or convert debt into equity to freeze funds.”
The court maintained that the group funneled the stolen money into USDT using third-party payment platforms. The scammers then converted the assets into Chinese yuan or U.S. dollars, garnering a profit of around 15% per transaction.
The court’s findings revealed that between June 1, 2023, and January 13, 2024, 66,800 Indians were defrauded of 517 million Indian rupees.
Scammers fabricate lies to prove credibility
A scam targeting 66,800 Indians drained $6M in USDT through a fake investment platform promising 8–15% returns. Operated via social media and messaging apps, funds were funneled through shell companies. In China, 9 scammers have been sentenced to 5–14 years. Stay alert ⚠️ 💰 pic.twitter.com/NIswzW7Asq
The Chinese authorities acknowledged that the group went to elaborate lengths to fabricate a compelling backstory to improve their credibility. First, they posed as financially connected Indian women stuck in unhappy marriages. Court documents mentioned that they uploaded curated photos of luxury vacations, gym routines, and stylish homes to social platforms. The court argued that the images crafted an illusion of emotional vulnerability and financial acumen.
He stated that his accomplices were responsible for training and managing the scammers, with experienced fraudsters specifically designing communication strategies and coaching employees. One scammer, Chen, maintained the payment channels for the fraudulent investment platform.
The authorities also believe that the fake operation included a simulated corporate structure. The scammers also listed fabricated Indian licenses, trademark registrations, and no-bank financial credentials on their website to make the firm appear legitimate.
The Chinese court also argued that the operation was not only financially deceptive but psychologically manipulative, which leveraged emotional intimacy and cultural cues to prey on trust. The presiding Judge, Liu Xilei, noted that the nation has been intensifying its crackdown on telecom and online fraud, urging perpetrators to immediately cease criminal activities and voluntarily surrender to authorities for potential leniency.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
By Nermeen Nabil Khear 