A Chinese court has sentenced nine individuals involved in a telecom fraud ring that defrauded over 66,000 Indian victims, laundering the proceeds through Tether’s USDT stablecoin. The operation, which stole 517 million Indian rupees (approximately $6.2 million), was orchestrated through fake investment platforms, according to The Global Times.
The scheme was initiated in May 2023 by a man surnamed He, who rented office space in Shandong Province. He recruited a team and established overseas servers to manage communications with Indian companies and oversee the movement of stolen funds. The group enticed Indian investors with promises of monthly returns ranging from 8% to 15% on investments as small as 1,000 rupees (about $12) through a platform called SENEE.
The method involved luring victims with initial returns. Once deposits exceeded the promised returns, the platform would either be shut down or debts were converted into equity to freeze the funds. These funds were then laundered via third-party platforms, converted into USDT, and ultimately exchanged into Chinese yuan or U.S. dollars, with the scammers taking a 15% commission.
One scammer, Li, reportedly impersonated a wealthy Indian woman who had found success through fund investments. The group also created counterfeit documents and websites to enhance their credibility. The Chinese court described the operation as a “sophisticated criminal syndicate marked by professional organization.”
The sentences handed down range from five to nearly 15 years in prison, accompanied by financial penalties. This case highlights the ongoing challenges in combating international fraud and using cryptocurrencies like USDT to launder illicit funds.
Similarly, Spanish authorities recently apprehended six individuals for their alleged involvement in a sophisticated, AI-powered cryptocurrency scam that defrauded over $20 million from at least 208 victims globally. The perpetrators purportedly used deepfake technology and artificial intelligence to create deceptive online advertisements featuring public figures endorsing fake crypto investments.
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