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在线翻译:
szdaily -> Shenzhen -> 
6 arrested in virtual coin scam
    2018-05-17  08:53    Shenzhen Daily

SIX people with Shenzhen Puyin Block Chain Group were arrested for swindling a total of 300 million yuan (US$47.25 million) by issuing virtual coins through its online P2P lending platform.

In June 2017, Nanshan police received reports from investors saying that Puyin Group in the Shenzhen Bay area was suspected of being involved in a fundraising scam by issuing Puyin coins.

More than 3,000 people purchased the virtual coins and in just six months their investments had disappeared.

The company promised investors the coins that could be traded on the virtual currency platform were mortgaged against brand products of Tibetan Pu’er tea, which had a market value of 10 billion yuan.

Under the manipulation of the company, the coin, which was worth 0.5 yuan, could be sold for 10 yuan. To attract investors, the company coaxed them by saying the coins would be split twice, each time increasing in value by 10 fold, meaning the price of the coin would increase by a factor of 100.

To popularize the virtual coin, the company purchased a P2P lending platform and invested heavily in branding the company through forums, advertisements on social media platforms and road shows at five-star hotels.

Wang Wei, deputy chief of the Nanshan economic crime investigation department, said more than 3,000 investors were cheated out of 300 million yuan in the scam. One investor was cheated out of more than 3 million yuan.

As the cash poured in, the suspects withdrew the money. By the end of 2017, the major suspects of the company had started to flee.

(Han Ximin)

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