Chinese scammers sold fake miners for $ 300 million

✨ Megiddo

✨ President ✨
Staff member
May 15, 2016
Chinese media have published information on the investigation of fraud on a large scale. Fraudsters sold fake mining devices to crypto-enthusiasts. Thus, the attackers managed to earn $ 300 million, which corresponds to approximately 2 billion yuan.

Entrepreneurial businessmen founded Lianxin Tech in China, which lasted for 4 months. During this time, the “entrepreneurs” were able to sell the gullible citizens who wanted to start mining cryptocurrency more than 300,000 units of fake mining equipment. The connoisseurs lured investors claiming that with the help of their miners two types of virtual assets could be extracted - the Filecoin coin with a certain reputation and the CAI company’s own token. According to the calculations that the scammers provided to potential victims, their equipment worth $ 850 had a quick payback. Spent the money should have returned within two months.

According to Lianxin Tech representatives, their miners showed high performance at 47 CAI per day. Allegedly, 100 cars could produce 7,000 tokens in just 24 hours. It is noteworthy that the CAI coin traded only on one exchange, which the speculators themselves prudently created. So attackers easily manipulated the price of a token that was constantly growing, thereby attracting more interest from crypto-enthusiasts.

Moreover, the scammers offered investors to become agents of the company, sell pseudo-miners to other interested parties and receive 10% of transactions if the sale took place. This greatly increased the profits of scam artists.

About fraud became known by chance. One of the miners discovered that the equipment continues to “extract” the CAI token even after a power outage. And by the time the victims turned to the police, the fraudsters managed to escape, grabbing all the proceeds. Naturally, Lianxin Tech’s farm owners didn’t extract any real Filecoin coins. Currently, the Chinese police is investigating this fact.
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