China-Based Crypto Scam Has Stolen More Than $10 Million

Live Bitcoin News
Live Bitcoin News April 25, 2020
Updated 2020/04/25 at 11:33 AM
4 Min Read

A digital currency mining scam has surfaced in China. In an age where malicious crypto schemes are at an all-time high, China and certain other regions of Southeast Asia appear to be a growing hub for such activity.

A Digital Mining Scam for the Ages

The scam stems from a company known as Antimatter Kingdom (AK), which reported calls itself a “super mining application group.” The organization runs on the CXC Chain, which first appeared in early April. As much as $11 million has been stolen from unsuspecting users at the time of writing, though the group is touting itself as much stronger than it appears to be, claiming in a statement that it has taken as many as 180,000 BTC.

A wallet allegedly owned by one of the scammers only contained about 1,607 bitcoins at press time.

Lately, crypto enthusiasts and analysts have been hearing about the heightened levels of crypto theft and malicious behavior. Since 2018, large Ponzi schemes such as Plus Token – which ultimately took as much as $1.4 billion in BTC from unsuspecting investors – have become a regular thing, though these scams do take on smaller, less noticeable forms as well.

One such case occurred in late January of this year, in which a 75-year-old woman from the United Kingdom named Frances Foster lost all her life savings to a prominent bitcoin scheme. Promising high returns, the ad for the scheme appeared too good to be true, and sadly, that’s exactly what it was. She invested as many as 11,000 pounds into the venture, only to get a nasty message from the scammers a few months later informing her that her money was gone.

Just yesterday, Live Bitcoin News reported that a bitcoin scam emerged out of Malaysia that was perpetrated by several Chinese nationals who had been banned from traveling out of their home country. Pretending to be experienced bitcoin investors, they would often coax people on applications such as WeChat to send in their money on the promise of getting more.

Naturally, this wasn’t the case. Several arrests were made in April following a two-month investigation from local law enforcement. The men involved – if found guilty – face years in prison and caning.

The Situation Is Getting Worse

In the case of the CXC Chain scam, investors duped into taking part were allegedly given an opportunity to harness the power of the AK cloud and engage in future mining efforts, though it seems that in order to do that, users were required to give up some of their digital funds in the process, making this a unique mining-based Ponzi scheme.

As much as $4.3 billion in digital funds were stolen in the year 2019. This is miles above the $3 billion stolen in 2018 and 2017 combined, suggesting the world of fraudulent crypto behavior is getting considerably larger.

The post China-Based Crypto Scam Has Stolen More Than $10 Million appeared first on Live Bitcoin News.

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