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Chinese Gang Laundered $6M via USDT, Targeting 66K Indians in Huge Crypto Scam

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  • 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.

Greed and Deceit Land South Korean in Prison After $2M Crypto Scam

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  • The 2nd Criminal Division of the Changwon District Court in Gyeongnam Province sentenced a man to 3 years in prison for fraud.
  • The crypto scam involved embezzling approximately 2.93 billion won (around $2.04 million).
  • Court cited the use of a “round-robin” scheme and noted that only partial restitution was made, justifying the custodial sentence.

The war on crypto investors continues as few individuals were recently caught in a crypto scam web. A man in his 30s from South Korea has been convicted for 3 years by the 2nd Criminal Division of the Changwon District Court in Gyeongnam Province for defrauding a cryptocurrency investor out of 2.93 billion won, roughly equivalent to $2.04 million.

Convicted Fraudster Lures Crypto Victim With Promising High Returns

According to the latest report shared by Kookje, the 30-year-old South Korean referred to as “Mr. A” was brought to trial by the victim referred to as “Mr. B” on the allegations of fraud. Mr. A and Mr. B are said to have met in an open chatroom, where Mr. A pretended to be a wealthy investor. He lured the victim by promising an annual return of 30–50% along with the repayment of the principal. 

During the court hearing, Mr. A is said to have collected 2.93 billion won, numbering up to 324 transactions dating back to December 21, 2021. Additional transfers of 5 million won from Mr. B were recorded between December and August 19, 2023. 

Greed and Deceit Land South Korean in Prison After 2M Crypto Sc

However, in reality, Mr. A did not possess any assets or employment and was already suffering a loss worth millions of won from his previous crypto investments. 

Mr. A was found to have built trust with Mr. B by repaying part of the funds he had received under the guise of interest, thereby encouraging a broader fraudulent scheme.

The ruling judge who presided over the case, Judge Kim Seong-hwan, noted that although the defendant returned a portion of the stolen amount, this did not make up for the full restitution due to the deceptive “round-robin” structure of the fraud. 

The court also considered that the actual financial gain was remarkably lower than the total nominal amount listed in the indictment when determining the sentence.