Crypto scams Asia: In less than 24 hours, the governments of China and South Korea have dismantled two organized groups that were in charge of promoting pyramid schemes by using cryptocurrency investments as a background. This decision seems to further reinforce the firm position of both governments in the fight against the criminal use of blockchain technologies.
In recent months, with the rise in popularity of cryptocurrencies, scams, and pyramid schemes have increased notably in Asia, where the market has seen an even higher adoption rate than in the rest of the world.
Such is the importance of the Asian market that, for example, a few months ago South Korea was one of the best arbitrage opportunities for traders because the price of bitcoin in its exchanges and P2P markets was much higher than in the rest of the world. Also, when rumors were spread about the country’s policies against cryptos, the world’s markets crashed into a solid bearish run.
Asian Ponzi Scheme # 1: China’s 13M$ Datang-Coin
On April 19, Northwest China police reported the dismantling of an organized gang that engaged in a multimillion-dollar scam by deceiving investors with a non-existent Token.
They organized events in several cities such as Ningbo, eastern Zhejiang Province, and even as far as in Pnom Penh, Cambodia. However, the one that attracted the most attention was a massive event that they coordinated in the province of Xi’an, the “Global Blockchain Technology Development Forum” an event covered by the China Daily [1]
To promote themselves they created a company: “Hong Kong Yongli Datang International Group” and hired a Caucasian-looking man for 30,000 Yuan to play the role of Evgeny Subbotin, their CEO.
They were in charge
