Three Chinese residents lost money after unsuccessful investments in dubious cryptocurrency projects. To make up for the losses, they organized their own fraudulent scheme, Cointelegraph reports, citing a statement from the Service for monitoring the security of public information networks.
According to the Agency, an investor named Yang lost about 100,000 yuan (more than $14,000) contributed to the project based on a multi-level marketing model. Teaming up with two other investors who were also affected by the actions of scammers, he launched his own fake baiye Chain project and a related mobile app.
During their work, they managed to attract more than 20 participants to the project, who in total invested more than 300,000 yuan (~ $43,000. After losing this money, the depositors went to the police, after which young and his partners were arrested.