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Chinese Authorities to Prosecute eight Alleged Masterminds behind the MDC pyramid scheme

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According to a local report, authorities in China’s Rong County, Zigong City, recently prosecuted eight people accused of crafting and delivering the MDC virtual currency pyramid scheme. The Rong County People’s Commissary handled the case’s prosecution, and it only carried it out after ten months of MDC’s 12 core members’ arrest.

According to a Sichuan Provincial Public Security Department report, the Magic Data Chain scheme was initially ruptured in May 2021. Afterward, investigations by authorities in Rong County then determined that the scheme had been in existence since July 2019. It is believed that pyramid schemes have handled transactions worth USD 147 million(1 billion yuan).

2 Million Registered Members

Reports suggest that the scheme had 2 million registered members. It also indicates that it had some 200,000 participants in 30 provinces across China. When authorities in Rong County raided MDC in 2021, the report said that the assets “seized and frozen” were worth around $4.4 million.

Virtual transaction of a Billion Yuan

In the report, authorities confirmed that all the criminals were led by someone known as Yang, who built a ‘blockchain website of Magic Data chain’ and a virtual currency trading website of ‘XIN Exchange. According to the report, they handled the transaction on the MDC pyramid worth 1 billion yuan. Such schemes have appeared before as well in the crypto world. Investors and traders should always remain aware and do proper research and analysis before investing in any project.

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  • Source: https://coinnounce.com/chinese-authorities-prosecute-mdc-pyramid-scheme/

This Post was originally published on Coinnounce

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