- Chinese court convicts nine individuals for running a telecom and crypto scam targeting over 66,000 Indians.
- The group used fake platforms and identities to promise 8–15% returns, stealing over ₹517M (~$6.2M).
- Laundered funds were converted to USDT and exchanged into yuan or USD at a 15% discount via third-party platforms.
After running a telecom and crypto scam ring that cheated more than 66,000 Indians over the past two years, a Chinese court has sentenced nine people to prison. According to court documents, these people laundered their profits using Tether’s USDT stablecoin.
According to an update by a local media outlet, the nine people have been remanded to prison in China for their involvement in this crypto scam. Even though the team was running fake investment sites and using false identities, it was led by a man whose surname was known as He.
He stole 517 million Indian rupees (roughly $6.2 million). He began the theft scheme in May 2023 by renting offices in Shandong Province. The man organized the transfer of stolen money and established overseas systems as well as team member hiring, who posed as Indian business owners.
He said the group drew in Indians by means of messaging, promising monthly gains of 8-15% on 1,000-rupees (approximately $12) when they invest using their SENEE platform.
USDT Was Used to Transfer the Crypto Scam Funds
The report claimed the crypto scam team would close down the site for a brief period to stop investors from receiving funds if the deposits exceeded a certain amount determined by them. By using third-party systems, the money was changed to Tether’s USDT stablecoin and then traded into Chinese yuan or the United States dollar with a 15% discount.
However, the report is silent on which platforms the fraudsters used to cash out. According to the court filing, one of the fraudsters, surnamed Li, presented herself as a “wealthy Indian woman” who became wealthy by means of investments in this platform.
The group also produced phony papers and websites to seem legitimate. Hence, the Chinese court called the gang a “sophisticated criminal group.” Along with the financial penalties, the sentences for each of the accused vary from several years to almost fifteen years in prison.
