Chinese Court Busts $6M Crypto Scam That Targeted Over 66,000 Indians

A major transnational scam that defrauded tens of thousands of Indians using fake crypto investments has been dismantled by Chinese authorities. The fraudulent scheme, which promised high returns via deceptive platforms, has led to the sentencing of nine individuals by a court in Shandong province.

Thousands of Indians Duped in Crypto-Powered Scam

The People’s Court in the Heze Economic Development Zone handed out prison terms ranging from five years to nearly 15 years, along with financial penalties, to those found guilty of orchestrating a $6 million scam. The fraud operation primarily targeted Indian nationals through fake identities, investment platforms, and emotional manipulation.

Operation Led by He Moutian

Court documents revealed that the fraud, which operated from May 2023 for over a year, was spearheaded by a man named He Moutian. He had rented office space in Heze’s Luxi New District to run the operation and hired a team to carry out the deceptive activities.

According to trial statements, the perpetrators posed as wealthy Indian women on various messaging apps. After building emotional relationships with Indian men, they convinced them to invest in a fake platform called “SENEE,” which claimed to offer monthly returns between 8% and 15% on investments starting as low as ₹1,000.

Also Read: Bhutan Bets Big on Bitcoin: A Lifeline for Its Struggling Economy?

Victims Locked Out After Depositing Funds

Once the victims invested, any attempts to withdraw funds were met with roadblocks. In many cases, the scammers would shut down the platform or deceitfully convert user funds into equity shares, thereby preventing withdrawals.

The stolen money was converted into USDT (Tether) through third-party platforms and later exchanged for Chinese yuan or U.S. dollars. According to the court, the fraudsters earned approximately 15% per transaction through these conversions.

Building a Web of Deceit

The group created elaborate fake identities, portraying themselves as affluent yet emotionally distressed women in unhappy marriages. To make their personas believable, they posted photos of luxury lifestyles, gym visits, and lavish homes. This helped build trust with their targets.

To give their scheme a legitimate front, the group forged Indian business licenses, financial certifications, and trademarks for the SENEE platform. These fabricated credentials were displayed on websites to lure unsuspecting investors.

Court Condemns Psychological Manipulation

The court emphasized that the fraud was not just financial but also emotional in nature. By using romantic deception and cultural familiarity, the scammers exploited the trust of their victims.

This high-profile case sheds light on the growing threat of international crypto-related frauds and the need for cross-border regulation to protect investors.