Cryptocurrency Wallets Used in Shanghai Fraud Scheme, 11 Arrested

A criminal organization has been recruiting individuals to register cryptocurrency wallets, which are then used by overseas fraudsters to facilitate illegal fund circulation. The scheme was uncovered after an informant, Mr. Tang, reported a scam to the Beicai Police Station in Shanghai. Mr. Tang received a text message claiming that a package needed to be signed for, but required a payment of 900 yuan upon delivery. After calling the sender to cancel the delivery, he was asked to provide bank card information. Upon entering his details, Mr. Tang's bank account was debited, resulting in a loss of over one million yuan.

The Pudong Public Security Bureau Anti-Fraud Center, along with the Xinlin and Beicai Police Stations, formed a task force to investigate the case. Their efforts led to the identification of a criminal gang led by individuals named Miao and Wang. This gang recruited personnel under the guise of labor recruitment, requiring them to register virtual currency wallets and engage in money laundering activities.

On April 22nd and 23rd, the police conducted a "net-closing operation" and arrested 11 criminal suspects in Qingpu District, Shanghai, successfully dismantling the criminal gang. According to police interrogations, the suspects Miao and Wang confessed that the gang recruited individuals like Sheng and Weng, who were required to provide a mobile phone and register a virtual currency wallet account. These accounts were then sold to overseas fraudsters at prices ranging from 40 to 50 yuan each for engaging in fraud activities.

Currently, Miao and Wang have been criminally detained on suspicion of fraud, while Sheng, Weng, and five others have been taken into custody for suspected concealing and withholding criminal proceeds. The case is currently under further investigation, with the police having frozen and recovered some of the defrauded funds. Asset recovery work is ongoing.

This incident highlights the growing use of cryptocurrency wallets in illegal activities and the need for enhanced vigilance and regulatory measures to combat such fraudulent schemes. The police's swift action in dismantling the criminal gang and recovering defrauded funds serves as a reminder of the importance of public awareness and cooperation in preventing financial crimes.