Chinese Court Drops the Hammer on Telecom Fraud Ring: 66,000 Indian Victims, Millions Stolen, and Tether's USDT in the Mix

Nine Scammers Sentenced in Shocking Cross-Border Scheme

Buckle up, crypto fans! A Chinese court just slammed the gavel on a telecom fraud ring that ripped off over 66,000 unsuspecting victims in India. These nine masterminds ran a slick operation that swindled a whopping 517 million Indian rupees—think $6.2 million in cold, hard cash.

From Fake Platforms to Tether's USDT: How They Pulled It Off

These scammers, led by a dude named He, kicked off this wild ride in May 2023. He set up shop in Shandong Province, recruiting a crew to run fake investment platforms. They used overseas servers and even posed as legit Indian companies to keep the cash flowing. He and his gang lured Indians with promises of juicy monthly returns—8-15%—on tiny 1,000-rupee ($12) investments through their shady SENEE platform.

But here's the twist: when the deposits got too high, they'd pull the plug on the platform or turn debts into equity to lock up the funds. Then, they laundered the loot through third-party platforms, converting it into Tether's USDT stablecoin before swapping it for Chinese yuan or U.S. dollars, pocketing a sweet 15% cut along the way. Talk about a high-stakes game!

Deception and Disguise: The Scammers' Playbook

One of the scammers, a woman named Li, went full-on undercover, pretending to be a "wealthy Indian woman" who hit the jackpot with fund investments. These guys didn't just stop at fake identities—they cranked out fake documents and websites to make it all look legit. The Chinese court called it a "sophisticated criminal syndicate marked by professional organization."

And the price for this elaborate scam? Prison time, baby! The sentences range from five years to nearly 15 years, plus some hefty fines. It's a stark reminder that in the wild world of crypto and fraud, justice can still catch up with you.