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- Tether USDT stablecoin was used to launder 6.2 million USD from a telecom scam targeting 66,000 Indian victims.
- Scammers used a fake investment platform, SENEE, offering high returns and locking victims’ funds in equities.
- Nine people were convicted in China for defrauding 66,000 Indians through a telecom scam, stealing 6.2 million USD.
The Global Times has reported that a Chinese court has convicted nine people for conning over 66,000 individuals in India through a telecom fraud scheme. The scam was related to some fake investment opportunities and led to embezzlement of 517 million rupees which is equivalent to 6.2 million US dollars. The scammers then utilized Tether’s USDT stablecoin to clean the received money.
However, the fraud ring that began the operation in May 2023 was headed by a man, surnamed He. Using this identity he hired an office in Shandong Province to establish a fake investing company called SENEE. In this case, the group adopted the use of fake identities to lure the Indian investors with an aim of gaining high profits from their investments.
Tether Used to Hide Profits
Moreover, the members of the group were proficient in the particular method of convincing their victims. They offered returns ranging between 8% and 15% per month from small investments of 1,000 Rupees (approximately $12). After the victims invested money, they would never be allowed to withdraw, or their dues would be changed to equities, thus locking them up.
The scammers did not stop there and washed the stolen funds through other third-party platforms. It was reducing the funds to Tether’s USDT stablecoin and selling them for the Chinese yuan or U.S dollars. They took a cut of 15 % from the conversion process to ensure that the profits could not be traced by the authorities.
One of the scammers, with the last name Li, claimed to be an Indian woman who owns a business and achieves success through fund investments. This persona was used to gain the confidence of the victims in order to make further investments. The group also in its attempt to make the scam more believable. It was able to forge relevant documents and even websites.
Fraud in the Crypto Era
The Chinese court held that it was a very organized syndicated crime group of professional criminals. The operation was well-coordinated and aimed at reaching as many people as possible, and this was successfully achieved. The nine men were given penalties ranging from five years to nearly fifteen years imprisonment, along with fines.
This case showcases the increasing trend of fraud in the world of crypto. With digital currencies such as Tether being adopted into the market, criminals are also looking for ways to get in. This has now posed a challenge to the authorities in ensuring that vulnerable investors are shielded from such elaborate con.
