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Title: Profiling the Cryptocurrency Scam: Unveiling the Covert Operations Behind the Fraud


The Money Mules:
Within this complex scheme, two primary suspects, surnamed Jiang and Zheng, played pivotal roles in enlisting the services of 19 other individuals commonly referred to as “money mules.” Court documents shed light on the mechanics of their operations. Utilizing a decentralized wallet called Bitpie, similar to Metamask in functionality, the group meticulously converted USDT to local exchange platforms on a peer-to-peer basis. These platforms specialized in virtual currency trading, facilitating a seamless conversion of digital assets into the Chinese Renminbi.

Obfuscation and False Transactions:
To carry out these transfers undetected, the group exhibited remarkable cunning. They dispersed cash withdrawal activities across multiple cities nationwide. Additionally, they consistently fabricated justifications for these substantial financial transfers. These justifications ranged from payments to fictitious projects to invented employee salaries. The goal was clear – to make the entire operation appear legitimate and transparent.

Jiang’s Illicit Gains:

Among the suspects, Jiang was found to have reaped significant profits from this operation. According to reports, he amassed an unexpected fortune of 22.62 million yuan, equivalent to USD 3 million. The court’s verdict left no room for ambiguity. The involved parties were deemed guilty of deliberate deception and concealment of illicit gains. As a result, they received various prison sentences accompanied by fines.

Jiang was sentenced to six years and three months in prison, in addition to a fine of 500,000 Chinese yuan. On the other hand, Zheng, facing similar charges, received a six-year prison sentence. He, too, was subjected to a fine resembling Jiang’s, amounting to 500,000 Chinese yuan.


While the court’s disclosure did not explicitly specify the origins of USDT, it is worth noting that Tether remains a preferred digital asset among fraudulent networks operating predominantly in Southeast Asia. Understanding the intricacies of such cryptocurrency scams is vital for investors and authorities to safeguard against financial fraud and ensure the integrity of the crypto market.

Disclaimer: The information provided in this article is for educational purposes and does not constitute financial advice. Cryptocurrency investments involve risks, and readers are encouraged to conduct their own research and consult with financial professionals before making any investment decisions.

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