Alleged Fraudster Arrested in China Over $15M Mining Hardware Con


When making funding selections it’s at all times necessary to recollect the previous saying, “If one thing appears too good to be true, it most likely is.” That is very true if anybody guarantees you a bitcoin mining rig, which individuals look forward to months in advance, at only a third of the retail worth.

Additionally Learn: Silicon Valley Whales Purchase Diamonds in the Hundreds of thousands With Bitcoin

The $15 Million Sting

Alleged Fraudster Arrested in China Over $15M Mining Hardware ConThe cryptocurrency market is normally hit with somewhat subtle cyber crimes like ransomware, hacking and malicious code injections. Nonetheless, good quaint strategies of separating individuals from their cash haven’t disappeared. A brand new instance of this comes from China the place a person allegedly made about $15 million by simply interesting to individuals’s greed, promising mining at an enormous low cost, and easily working away with the cash.

Mr. Zhang, a resident of Anhui province in his twenties, has been arrested for allegedly defrauding nearly 100 million yuan from fifty victims over a 3 month interval, state media China Central Tv (CCTV) studies. He took benefit of the insatiable demand for bitcoin in China on the tail finish of 2017’s worth rally and posted claims on-line that he can ship mining rigs, that value about 30,000 yuan on the time, for simply 10,000 yuan. The supply of the products was promised two months after he bought the cash, however it by no means materialized.

Cash Spent on Luxurious Automobiles

Alleged Fraudster Arrested in China Over $15M Mining Hardware ConIn keeping with the report, Zhang gained the belief of his victims by showing to ship a number of the mining machines for the discounted worth. Nonetheless, he didn’t actually have a supply for reasonable rigs, and the Chinese language police found later-on that they have been really purchased for full worth by him. As soon as individuals have been satisfied Zhang can actually get discounted rigs, he acquired orders for 1000’s of them earlier than vanishing in January.

The alleged conman surrendered to the police by his personal volition after two months, claiming he was unable to ship the promised rigs resulting from provide scarcity and rising costs. He now awaits prosecution, however the cash he acquired had already been spent on luxurious automobiles in addition to the rigs, in accordance with CCTV.

Would you belief anybody that guarantees a mining rig at a 3rd of the associated fee? Share your ideas in the feedback part under. 

Photographs courtesy of Shutterstock.

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