Chinese Fraud Group Deceives Thousands of Indians, Stealing $6 Million

Big Scam Targets Indians

A Chinese court has sentenced nine people for running a big fraud operation. The scam tricked over 66,800 Indians out of money. The group used fake investment platforms and false identities to steal more than 517 million Indian rupees, which is about $6.2 million.

The court case happened in Heze, a city in Shandong Province, China. The criminals were caught and given jail sentences of 5 to nearly 15 years. They were also fined.

How They Tricked Victims

The fraud started in May 2023. A man named He Moutian led the scam. He rented an office in Heze’s Luxi New District. He hired a team to help him. They set up servers in other countries. They also contacted Indian companies to seem more real.

The scammers used chat apps to find Indian victims. They pretended to be rich Indian women. Some said they were in unhappy marriages to gain trust. They shared photos of luxury trips, gyms, and fancy homes to look successful.

Once trust was built, they invited the victims to invest in a fake platform called SENEE. They promised monthly returns of 8% to 15%. People could start investing with just 1,000 rupees (around $12). Many people believed them and sent currency.

At first, the platform looked real. But when people wanted to take their currency out, problems started. Sometimes the scammers shut the platform down. Other times, they told victims that their money was now in the form of "company shares", making it impossible to withdraw. This trick left thousands of people stuck and unable to get their money back.

Money Laundered Through Crypto

The stolen currency was sent through third-party platforms and converted to Tether USDT , a type of cryptocurrency. Later, it was exchanged into Chinese yuan or U.S. dollars. The fraud group made a profit of around 15% on each transaction. The court did not reveal the exact platforms used to move or convert the money.

To make the operation look legal, the group created fake business websites, licenses, and trademark documents. They claimed to be a non-bank financial company in India.

Chinese police and the court called it a well-organized and professional crime group. They said the scam was not only about money, but also used psychological tricks to control the victims.

Court Sentences

All nine members were found guilty. The sentences range from 5 years to 14 years. The court also ordered the group to pay fines.

A scammer with the last name Li pretended to be a wealthy Indian woman and told tales of how she had made gain through investments. To give credibility to the story, she also shared fictitious documents.

Conclusion

This chinese scam demonstrates the dangers of internet fraud. To deceive thousands, the criminals used crypto, emotions, and fictitious identities. Indian victims lost their savings after being promised easy money.

Chinese courts are now taking aggressive measures to combat international fraud. This case serves as a warning to others who attempt to defraud people in other countries using technology.