Chinese law enforcement agencies It seized 400 million yuan or $62.5 million worth of crypto assets. In crackdown on Filecoin miner Ponzi scheme
Chinese police in Suzhou have arrested 31 people under suspicion of operating a Ponzi scheme involving IFSUnion, a Shanghai-based filecoin mine.
according to xinhuareportOn Saturday, local police seized assets including Ether, USDT and FIL as part of a crackdown.
Reports say police have arrested suspects in several cities. including Shanghai, Wuhan and Shenzhen, but did not specify that all of them were employees of IPFSUnion or their respective distributors.
IPFSUnion said indeclarationon Friday to customers and partners suspected in this case. The suspect used potentially illegal money to buy mining equipment. therefore assisting in the investigation And now most of the members are back to work and will resume service after the support investigation is complete.
IPFSUnion is one of the top 10 Filecoin Mining Companies with all the power of efficient storage. They also sell mining machines and computing power directly to users or through distributors.
It is unclear whether IPFSUnion is allegedly directly involved in the Ponzi scheme or intentionally allowing its distributors to maintain non-existent devices, but the Filecoin-based Ponzi scheme has been quite the epidemic in China since 2018 after. At Protocol Labs, it raised $200 million in an ICO the previous year.
Before Protocol Labs launched the testnet and Filecoin mainnet in 2020, the design of the network underwent several changes. In terms of equipment and software requirements suitable for mining FIL, the original cryptocurrency on the network.
But some Chinese firms and brokers are taking advantage of that data gap. To sell substandard or counterfeit Filecoin mining rigs to investors unwittingly in China and promising returns, Protocol Labs had to issue an anti-fraud statement in late 2018 warning investors it had nothing to do with it. Sale of any mining equipment
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