The police XI’an city held a successful arrest of those involved in the cryptocurrency pyramid, positioning itself as a blockchain startup. The suspects created a platform “DBTC” and made it available for users from March 28. Created almost 13,000 people, which in total has invested 80 million yuan (13 million U.S. dollars).
Law enforcement authorities have charged the chief organizer by the name of Zheng, Vice President of marketing, GOU Limits, as well as administrators DBTC Zhang MOU and Li MOU. The team began work on the project multi-level marketing in October 2017. Offered token Da Tang Coin (DTC) for the price of 3 RMB (0.48 USD). Scammers also visited Cambodia, Phnom Penh, Xian and Ningbo to promote the project.
Initially, each participant had to invest 3 million yuan (us $ 400 thousand. USA), to finally to 80,000 yuan (12 732 USD. USA) every day and more than 2 million yuan (us $ 300,000. USA) per month.
Promises such a high income and also the fact that as a founder of the company, the organizers hired an international “professional”, nobody guarded. Confident financial position of the company and claim the title of “high-tech multinational corporations”, were one of the reasons why investors fell for the Scam.
Promises of high profits was due to the subsequent development of subsidiary networks and the potential of the coins after the listing on multiple exchanges.
Trying to make the project more attractive to investors, the creators hired for the position of chair of the DTC Holding of a man with a “Western” appearance Evgenia Subbotina, whose task was to position the pyramid as an “international blockchain startup”.
At the event dedicated to the blockchain, Subbotin was announced as the Chairman and CEO of DTC Holding. During his speech, Eugene on behalf of the company praised the cryptocurrency DBTC, promising that the token will be traded on several exchanges, including Shangya, U-Coin and ZB.com.
Investors became agitated when DBTC independently change the price of your cryptocurrency and established the “rewards for participation” and “Reward for performance” to reward members of his team. 15 APR based on user complaints, the public security Bureau of XI’an together with a group of economic investigation arrested nine suspects.
Earlier this year, the Ministry of public security of China and State administration of industry and Commerce (SAIC) began a nationwide investigation to put an end to cryptocurrency the pyramids.
Meanwhile, despite a complete ban ICO in the country, Chinese investors continue to participate in primary offerings of coins detours.