Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme
Chinese authorities in Rong County recently said they have prosecuted eight individuals accused of being the masterminds behind the Magic Data Chain (MDC) pyramid scheme. The pyramid is thought to have handled transactions with a total value of over $147 million. Virtual Currency Pyramid Scheme
Authorities in China’s Rong County, Zigong City, recently prosecuted eight people accused of orchestrating the MDC virtual currency pyramid scheme, a local report has said. According to the report, the prosecution of the case was handled by the Rong County People’s Procuratorate, and was only carried out some ten months after the arrest of MDC’s 12 core members.
According to a report from the Sichuan Provincial Public Security Department, the MDC pyramid scheme was initially cracked in May 2021. Subsequent investigations by authorities in Rong County then determined that the scheme had been in existence since July 2019.
MDC’s 2 Million Registered Members
In the report, authorities said the criminals — who were led by an individual called Yang — had “built a blockchain website of ‘Magic Data chain’ and a virtual currency trading website of ‘XIN Exchange."” According to the report, the MDC virtual currency platform had handled transactions with a total value of over $147 million (1 billion yuan).
In addition, the scheme had 2 million registered members and some 200,000 participants in 30 provinces across China. When authorities in Rong County finally raided MDC in 2021, the assets “seized and frozen” were worth just over $4.4 million, the report said. Tags in this story China, Magic Data chain (MDC), Pyramid Scheme, registered users, Scam, Sichuan Provincial Public Security Department, Virtual Currency
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. South Korea Launches "Emergency" Investigation Into Collapse of LUNA and UST REGULATION | 10 hours ago Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleAlgoracle Announces $1․5 Million Seed Round Next articleFTX Founder Sam Bankman-Fried Thinks Bitcoin Has No Future as a Payments Network Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing