Chinese Fraud Syndicate Sentenced After Duping 66,800 Indians in $6 Million Digital currency Scam
Picture believing you’ve come across an enticing investment application managed by an amicable woman promising 15% returns, only to find out it was a sophisticated fraud based in another country. That’s precisely what tens of thousands across India encountered with this digital currency investment deception.
In a scenario that’s as international as it is bleak, a court in China has handed down sentences to nine individuals for orchestrating a crypto-related scam that swindled over 66,000 Indian citizens out of close to ₹52 crore (approximately $6.2 million). The orchestrator? A man known solely by the surname “He,” who initiated operations in May 2023 from the city of Heze in Shandong province.
Nine individuals received prison sentences in China alongside fines for their involvement in a telecom fraud scheme aimed at Indian victims. The scam illegally siphoned 517 million Indian rupees ($6.2 million) from 66,800 victims through fake investment platforms and… pic.twitter.com/9mtgJHKqKS
— Global Times (@globaltimesnews) April 13, 2025
Their scheme revolved around a fraudulent investment app known as SENEE. The catch? The fraudsters masqueraded as affluent Indian women online, complete with counterfeit profiles, images of luxury handbags, and charming messages guaranteeing substantial monthly returns on modest investments. Just ₹1,000 could supposedly yield an 8–15% return. Sounds too good to be true? Indeed, it was.
When individuals began to invest larger sums, the app would lock them out or convert their deposits into “equity” that they couldn’t access. In other terms, farewell funds.
Money Laundering via Digital currency
And it didn’t end with merely collecting money. The group was adept at laundering illicit funds.
After the victims were robbed, the fraudsters cleaned the money through intermediary services, subsequently converting the cash into Tether (USDT), a well-known stablecoin in crypto communities. From there, it was either cashed out in yuan or U.S. dollars. The crooks allegedly retained a 15% fee on each transaction, which was quite blatant.
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Legal Actions and Sentencing
In the courtroom, the prosecution detailed just how systematic the group was. This wasn’t a mere casual enterprise but a structured criminal scheme with designated roles, responsibilities, and profit distribution. Everyone had a specific role.
The outcome? Prison sentences ranged from 5 up to nearly 15 years, in addition to financial penalties. The overseeing judge, Liu Xilei, underscored that China is taking this matter seriously. He also urged anyone engaged in similar fraudulent activities to come forward before being caught by law enforcement.
This incident isn’t solely about a gang of criminals. It serves as a cautionary tale regarding the sophistication of international digital currency fraud and the challenges in curbing it when victims and criminals are located in entirely different nations.
In India, incidents like this have led to government crackdowns. Initiatives such as the Sanchar Saathi program have already disconnected millions of suspicious phone numbers and blacklisted dubious devices. It’s akin to a digital game of whack-a-mole, but it’s a starting point.
The fact that this group was located and sentenced signifies progress. However, the worldwide character of cryptocurrency scams complicates enforcement considerably. Currently, the most effective defense is education — and understanding that if anything online seems too appealing, it likely is.
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Key Takeaways
- A Chinese criminal enterprise was convicted for executing a $6.2M crypto asset fraud that victimized more than 66,800 Indian citizens through a phony investment application named SENEE.
- Scammers pretended to be prosperous Indian women online, enticing victims with promises of 8–15% monthly profits to convince them to invest money.
- Money was laundered via third-party services and converted into Tether (USDT), then withdrawn as yuan or U.S. dollars.
- The mastermind and eight accomplices received prison terms ranging from 5 up to nearly 15 years, along with monetary fines.
- The situation emphasizes the proliferation of international crypto asset fraud and the increasing necessity for cross-border regulation and digital awareness.
The article Chinese Fraud Ring Jailed After Scamming 66,800 Indians in $6M Crypto Scheme appeared first on 99Bitcoins.
