Four suspects in China accused of being involved in the alleged $2B crypto pyramid scam were formally charged by prosecutors.
The Supreme People’s Procuratorate said in a news release, four people in the Hunan province were charged by a local fiscal as a part of a clampdown on OneCoin, a digital currency scheme considered fraudulent and “investigated” by the Finnish Police.
Back in August 2017, crypto authorities in Luxembourg also issued a “warning” to investors against OneCoin. The Italian Antitrust Authority (IAA) “fined” a group of companies promoting OneCoin. All those crackdowns on OneCoin were done on the belief that the investment scheme was fraudulent.
According to the report, a total of 98 people have been prosecuted since September 2017. They were allegedly scamming investors from 20 provinces in China. The legal process has been administered in 3 phases where a number of suspects were sentenced to up to 4 years in prison and fines up 5 million yuan.
There were up to 2 million victims with investor capital received up 15 billion yuan ($2B). Of those, only nearly 1.7 billion yuan ($266M) has been retrieved, the report said.
Recently, Bulgaria has joined the countries going after individuals running the Onecoin digital currency scheme. Its Special Prosecutor’s Office has collaborated with its counterparts in other countries to run after the fraud suspects.