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Pyramid Scheme for Virtual Currency
According to a local newspaper, authorities in China's Rong County, Zigong City, recently punished eight persons suspected of coordinating the MDC virtual currency pyramid scam. According to the article, the case was prosecuted by the Rong County People's Procuratorate and took 10 months to complete after the MDC's 12 key members were arrested.
The MDC pyramid scam was first uncovered in May 2021, according to a report from the Sichuan Provincial Public Security Department. Authorities in Rong County conducted further investigations and discovered that the plan had been in operation since July 2019.
The 2 million registered members of MDC
The thieves, according to the investigation, "created a blockchain website of 'Magic Data chain' and a virtual currency trading website of 'XIN Exchange." The MDC virtual currency network, according to the study, has handled transactions worth over $147 million (1 billion yuan).
Furthermore, the plan has 2 million registered members and 200,000 participants throughout 30 Chinese regions. The assets "seized and blocked" by Rong County officials in 2021 were valued slightly over $4.4 million, according to the report.
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