In China, 34 individuals were sentenced for creating a fraudulent cryptocurrency platform called OURBIT, which deceived approximately 30,000 investors out of around $64 million. A court in the city of Ezhou found that the fraudsters organized a complex scheme, posing as experts and manipulating data to make their platform appear legitimate.
This is reported by Finway
OURBIT claimed to have licenses from the United States, the United Kingdom, and Singapore, offering invalid trading instruments such as «zero slippage» and stop orders, while also displaying fictitious cryptocurrency quotes. All transactions on the platform were fabricated, resulting in users losing their invested funds.
Methods of the Fraudsters
To attract potential victims, the fraudsters created groups on WeChat, where fake participants showcased imaginary profits. Victims were persuaded to invest in high-leverage deals, and in the event of a win, their accounts were blocked, requiring new deposits for unlocking, which also disappeared.
Verdict and Consequences
OURBIT operated as an organized structure, consisting of departments for technology, marketing, and user acquisition. The perpetrators hired agents and sub-agents who received a percentage of the losses incurred by recruited clients. One victim reported a loss of over $400,000.
The court found the entire group guilty of intentional fraud and issued sentences ranging from three to twelve years of imprisonment. Additionally, all convicted individuals are required to pay substantial fines. The judge emphasized the importance of caution when investing and warned against trusting dubious get-rich-quick schemes.
“The judge stressed the importance of caution during investments and warned against trusting dubious get-rich-quick schemes.”