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Criminal Gang Defrauds Victims of 1 Million RMB Using Fake Cryptocurrency Platform

Coin WorldThursday, May 8, 2025 2:29 am ET

1min read

A criminal gang in China has been dismantled after using a fake cryptocurrency platform to defraud victims out of over 1 million RMB. The gang, led by an individual named Liu, established a fraud workshop in the Yuelu District of Changsha. They used the guise of "Asian beauties" to lure victims and the Hconex digital currency platform to carry out their scheme. The fraudsters manipulated backend data to make it appear as though the virtual currency invested by victims had been completely "lost."

The Intermediate People's Court of Loudi City, Hunan Province, handed down sentences to the three main culprits involved in the fraud. Liu, the ringleader, was sentenced to 11 years and 6 months in prison and fined 300,000 RMB. Kang, another key member, received a sentence of 11 years and 2 months in prison and a fine of 300,000 RMB. Zeng, the third individual, was sentenced to 7 years and 6 months in prison and fined 90,000 RMB. The court also ordered the recovery of the illegal gains from the three individuals according to the law.

This case highlights the growing trend of cybercrime and the use of fake cryptocurrency platforms to commit fraud. The sophisticated methods employed by the gang, including the manipulation of backend data, underscore the need for increased vigilance and regulation in the digital currency space. The severe sentences handed down by the court send a strong message to potential fraudsters, emphasizing the serious consequences of engaging in such criminal activities.

The successful prosecution of this case also demonstrates the effectiveness of law enforcement efforts in combating telecommunications network fraud and associated crimes. The coordinated actions of the People's Court of Shuangfeng County and the Intermediate People's Court of Loudi City ensured that justice was served and the victims received some measure of redress. The recovery of illegal gains further underscores the commitment of the legal system to holding criminals accountable for their actions.

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