Key Takeaways
- Chinese authorities dismantled a $6 million crypto scam that primarily targeted Indian nationals.
- The fraud ring impersonated wealthy Indian women to lure victims into fake investment schemes.
- A court in Shandong sentenced nine criminal group members to prison terms ranging from five to nearly 15 years.
Chinese authorities have taken down a transnational fraud ring that targeted tens of thousands of Indian nationals through a crypto-fueled telecommunication scam involving fake investment platforms, fabricated identities, and promises of high returns.
The People’s Court of Heze Economic Development Zone in Shandong province sentenced nine individuals to prison terms ranging from five years to 14 years and nine months for their roles in orchestrating the $6 million scam. The court also fined the group.
Elaborate Honeytrap
The scam, which ran for more than a year beginning in May 2023, reportedly duped more than 66,800 Indian victims. At the center of the operation was He Moutian, who allegedly rented office space in Heze’s Luxi New District and recruited a team to execute the fraud.
According to court documents, the group posed as affluent Indian women on chat apps, forging personal relationships with Indian men to build trust.
Once emotionally invested, the victims were steered toward a sham investment platform dubbed “SENEE,” which promised monthly returns of 8 to 15% on deposits as low as ₹1,000.
“I met an Indian on a chat app and learned about the SENEE online investment platform,” Moutian confessed during the trial. “I communicated with customers through the chat app, using the bait of high returns of 8% to 15% for investing 1,000 rupees a month to attract Indians to invest money on the platform.”
When investors attempted to withdraw their funds, the scammers would either shut down the platform or falsely convert customers’ holdings into equity shares—effectively locking them out.
The group then funneled the stolen money into USDT using third-party payment platforms. These assets were later converted into Chinese yuan or U.S. dollars, netting a profit of around 15% per transaction.
A Manufactured Reality
The group went to elaborate lengths to fabricate a compelling backstory to improve their credibility.
Posing as financially connected Indian women stuck in unhappy marriages, they uploaded curated photos of luxury vacations, gym routines, and stylish homes to social platforms, crafting an image of emotional vulnerability and financial acumen.
The fake operation also included a simulated corporate structure. To make the company appear legitimate, the scammers listed fabricated Indian business licenses, trademark registrations, and non-bank financial credentials on their websites.
The court found that the operation was not only financially deceptive but psychologically manipulative—leveraging emotional intimacy and cultural cues to prey on trust.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
