Nine Sentenced for Defrauding Indians of $6 Million in USDT

• Nine crypto fraudsters were sentenced for scamming 66,800 Indians of $6 million.  
• The scammers promised high returns but froze funds after large investments were made.  
• Authorities continue to urge caution against easy money schemes and fake investments.

A local court in China has sentenced nine individuals to prison terms ranging from five to fourteen years for orchestrating a massive cryptocurrency scam. The fraudsters targeted over 66,000 Indian victims, defrauding them of approximately $6 million in a USDT (Tether) fraud scheme. The case highlights the risks of crypto scams and the urgency of taking stringent measures, such as to safeguard investors all over it.  

Fraudulent Investment Platform SENEE

The fraudulent scheme was masterminded by He Moutian, who set up an office in Heze, Shandong Province, in May 2023. He and his partners launched a fake investment platform called SENEE. The platform promised victims monthly returns ranging from 8% to 15% on deposits as low as 1,000 rupees. However, once investors deposited more substantial amounts, the platform was abruptly closed, and their funds were frozen.

The fraudsters then used third-party payment systems to convert the stolen funds into USDT, which was later exchanged for Chinese yuan (RMB) or US dollars. They kept a 15% commission on the transactions. The entire operation was sophisticated, with the fraudsters using false identities, fake websites, and chat applications to convince victims to invest.

Court’s Verdict and Authorities’ Action

The court concluded that the group had specific roles and very close coordination, with each perpetrator assigned specific responsibilities. All the nine accused were given prison sentence and fine for their involvement in the act. The judge noted that though the scam was being applied to foreigners, such frauds were still on record within China. The authorities have emphasized the importance of remaining cautious, particularly when dealing with promises of easy profits or insider tips.

Related: Hacker Loses $5.4M ETH to Phishing Scam After zkLend Heist

According to the report, the total amount defrauded from the Indian victims between June 2023 and January 2024 was about 517 million Indian rupees. The magistrate further cautioned against widespread scams such as fake investments, refunds, and cashbacks and encouraged users to report if they encounter such scams.

This case exemplifies the increasing sophistication of cryptocurrency fraud, which is becoming a serious issue worldwide. However, it also underscores the need for stronger security policies and increased awareness among investors to protect against such schemes.

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