Chinese Scammer Faces A Decade In Prison

In the wake of the recent Bybit theft, China cracked down on crypto fraud and is looking to revamp its cybersecurity laws. In another case that highlights growing scrutiny of crypto investment in China, an online crypto fraudster is given severe punishment for misrepresenting an AA token in a sale. The verdict was handed down by a Guangdong court and is a stark reminder that China is not going to sit and tolerate such behaviors anymore. 

The case is not just a warning sign for online miscreants. In fact, it is also a stark reminder to investors about the risks of making unverified purchases. A man received a stringent verdict of 11 years in incarceration for defrauding investor(s). As per Guangzhou Daily, the accused, who is identified as Xie, misrepresented AA tokens as famous AA China tokens in a sale.  

Reports suggest that Xie defrauded CNY 990,000 ($6,637) in exchange for 1.6 million tokens. However, after receiving the payment, Xie only transferred a portion of the decided tokens, and the rest were kept locked as non-tradeable. The investor, who is identified as Wu, made repeated requests to Xie regarding a solution or a refund. However, Xie did not provide either and cut off contact.  

As a result, Xie filed a complaint, and Shenzhen Futian District Court found Xie guilty of fraud. Therefore, Xie was sent to 11 years in prison. Moreover, Xie will also have to pay a fine of CNY 50,000 (~$7,000). The final verdict has been received, and sources suggest that there is no scope for bail as of yet.  

China’s Crackdown On Crypto Fraud 

Apart from the AA token verdict, China has been making important headways in curbing crypto-related crimes. In another similar event, China cracked down upon a money laundering network that processed close to CNY 1 billion ($136 million) in crypto transactions. 

The arduous investigation pointed out three possible suspects across different provinces. The state also conducted some raids where high-value goods and digital assets were seized. This shows that China is tightening its grip on crypto and other financial criminals that use the internet to run scot-free.  

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