The Chinese law enforcement has reportedly shut down a major Wenzhou-based crypto scam, which caused a $14.31 million financial damage. 

Specifically, the local governments have reportedly brought down a massive crypto-related scam in Wenzhou, China, which caused total financial damage exceeding 100 million yuan ($14.31 million), which has been confiscated together with numerous luxury cars and villas.

The scammers have reportedly been running their operations since 2019, with Telegram chat groups being their primary source for identifying their next targets, including one called “Huobi Global Moving Brick Arbitrage HT Chinese Group Community.”

Particularly, the scammers claimed themselves to be investors who have secured benefits from an “investment scheme.”

The scammers reportedly had their targets transferring their cryptos to a fake Huobi wallet address, and the “investor” would be eligible for a larger amount in Huobi Token (HT). Instead of that, a fake HT link was sent their way. 

Mo Li – HashKey Hub head of marketing – reportedly revealed that Chinese law enforcers have confiscated “tens of thousands” of Ether (ETH), Bitcoin (BTC), and Tether (USDT).

The victims were reportedly promised a return rate of 8% for their investments, and more than 1300 individuals have been victimized by the scheme, as the investigation is still being carried out.

The Chinese governments reportedly also busted a group of alleged scammers on May 21, pretended to be officials from major exchange platform Huobi, running an over-the-counter (OTC) website.