Digital Money World

China: Online Ponzi Scheme Crack Down

by Mark on September 11th, 2007

Chinese authorities are taking a hard line against online ponzi schemes! Their Ministry of Public Security just arrested more than 3300 organizers and core members across 14 different provinces and cites in China.

The scheme, operated under the name of “Swiss Mutual Fund”, required each investor to pay 8,000 yuan (US$1,052) and promised to pay back 400,000 yuan (US$52,000) in 30 months. *xinhuanet.com

The Chinese government’s recent campaign against online pyramid schemes which ran from mid July to mid August identified around 600 scams and involved over $200 million dollars of value in their local currency (Yuan).

The largest scam in China to date, the so called “Swiss Mutual Fund” pyramid scheme.  Investigated since May of this year, is now reported to have involved 170,000 people and was responsible for swindling around $180 million dollars.  No mention of how the money was paid or what method of online payment was used.

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POSTED IN: Fraud, International