In China for fraud in the sale of mining hardware to mine bitcoins at a lower cost have arrested a man.
According to state media, the suspect stole about 100 million yuan (15 million dollars) from 50 investors.
The name of the offender — Jung, he was 20 years old and he comes from Anhui province. It is assumed that, initially, he traded asik at prices far below the market, incurring losses. Thus he managed to gain the confidence of buyers, then it collected a payment for 3000 orders and disappeared.
Sold Jung Antminer S9, the value of which at that time was about 30,000 yuan (4,600 U.S. dollars). The attacker gave them for “pennies” 10,000 yuan ($1,500). Generous trusting the seller, buyers have made a large order with an advance of two months for delivery of equipment, giving Django enough time to disappear with their money.
According to one of the victims, Mrs. Fu Jiang carried out several actual sales and deliveries to achieve legitimacy. With every order he acquired the equipment at market price, and suffered losses of 20,000 yuan ($3,000) on each asik. Soon he had a lot more buyers, especially in November and December, when the price of cryptocurrencies has grown rapidly.
China Central television ( CCTV ) reported Sunday that Zhang spent the money on luxury cars and large mining farm. In conversation with police he said he went out of business because the price of mining equipment too has increased, and it became impossible to trade.
Mining is very popular in China because of the cheap electricity, despite the fact that the country banned ICO and blocked access to sites of cryptocurrency exchanges. However, the Executive Director of Ripple brad Garlinghouse criticized the power of bitcoin miners in China, because, in his view, this means that cryptocurrencies are under threat of control by China.