Saturday, September 23, 2023

XRP Pyramid Scheme Busted


Chinese police officials, notably those from the Pingchuan Branch of the Baiyin City Public Security Bureau in Gansu Province, have uncovered a case involving a pyramid scam based on the XRP digital currency.

The inquiry on the fraudulent scam started in March of 2021. They detained seven primary suspects and seized and frozen 8.46 million Ripple currency. The case had a total value of up to 126 million Yuan. That’s around $20 Million.

Ripple UnionPay Community

The Pingchuan Branch’s Team identified a suspicious movement in the end of March 2021. At the same time, they noticed that they suspected someone of utilizing the “Ripple UnionPay Community” mobile app. They were able to persuade users to join group chats on social media platforms like QQ and WeChat. Following that, they made available crucial financial investment data for the virtual currency XRP (Ripple Coin)

It’s not like the well-known pyramid schemes that use a well-known website. They created and managed the “Ripple UnionPay Community,” as it was dubbed, using a special mobile app. A software business situated outside of town designed the application, according to the investigation.

The Masterminds

Authorities recognized Wang and Zhang as the scheme’s masterminds.

They would argue that the software can generate high returns by using node payouts, community promotion and operation rewards, performance awards, and so on. Similarly, it will entice others to download and install the “Ripple UnionPay Community” mobile app, after which they will purchase Ripple currency. After that, users must recharge their account using the app in order to activate it and get membership qualifications.

The authorities were able to recover several hardware components as a result of the targeted operation. They were able to seize a sum of $8.46 million in Ripple Coins in this location. Moreover, after amassing as many as 47,000 members distributed across 30 provinces, they will disband the organization.

Digital Currency Crimes

People only know the pyramid scam as just one of several well-known crimes committed with the help of digital currencies. Fraudsters have chosen to constantly commit their crimes through these immature asset classes. It is because of the perceived invincibility of digital currency. However, people know that the majority of crimes involving digital currencies have a track record of getting caught by police. This is proving that this belief is incorrect.

The capture of Ransomware masterminds in Ukraine is one of the successful outcomes of focused cybercrime investigations. It should be noted that the arrested couple is well-known for their frequent use of outrageous ransom demands. In addition, they were able to market the two for between €5 and €70 million.

The coordinated effort resulted in the confiscation of $375,000 in cash. It also led in the seizure of two high-end automobiles valued at €217,000. Finally, authorities seized $1.3 million worth of cryptocurrencies.


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