USDT Scam Busted: Nine Sentenced in China for Defrauding Indian Crypto Investors
A court in China has convicted nine people to prison for their roles in an extensive online and telecom fraud targeting Indian citizens.
As reported by Global Times, a group deceived 66,800 individuals in India, stealing approximately Rs 51.7 crore (around $6.2 million) through fraudulent crypto investment platforms and deceptive social media tactics.
How They Carried Out Crypto Scam
A man known by his surname, He masterminded the scheme. He initiated the telecom fraud in May 2023 by establishing an office in Heze, situated in the Shandong Province of China, enlisting team members, organizing overseas servers, and collaborating with firms in India to facilitate monetary transfers.
However, He and his team created profiles on social media, posing as affluent Indian women. They utilized chat applications to engage with Indian men and gradually won their trust by forming emotional connections. After the bond was solidified, they presented their victims with a fraudulent investment platform named “SENEE.”
“We lured Indians through messages with enticing promises of 8-15% monthly returns on Rs 1,000 ($12) investments,“ He revealed.
The proposal persuaded Numerous victims, believing it was a genuine opportunity to earn funds. As an increasing number of individuals began investing, the group either terminated the platform or asserted that the deposits had now become ‘equity,’ making it impossible for the investors to retrieve their funds.
Another individual, identified by the surname Li, claimed to have utilized counterfeit images portraying luxuriant lifestyles and geo-tagged locations in India to render her profile credible. The fraudsters even forged fictitious corporate documents — including manipulated NBFC licenses and business approvals — to enhance the scheme’s authenticity.
The group employed third-party payment platforms to transfer the illicit funds and converted the proceeds into USDT. Subsequently, they exchanged the digital currency for Chinese yuan or US dollars while taking a 15% fee as a commission.
Verdict of the People’s Court
The court characterized the organization as a meticulously structured criminal syndicate. Each member had specific responsibilities — ranging from managing chat scripts and onboarding new recruits to overseeing payments and counterfeit documentation. The group functioned for just over seven months, from June 1, 2023, to January 13, 2024.
According to their functions, the court imposed jail sentences on the accused ranging from “five years to 14 years and nine months, accompanied by fines.”
