Chinese police apparently arrested a group of con artists who launched a fake crypto scheme to recoup their losses after being defrauded by various crypto scams.

According to an article by the Public Information Network Security Oversight Bureau, published in WeChat today, an investor named Yang created a bogus investment scheme after losing about 100,000 yuan (more than USD 14,000) in a crypto-money MLM project.

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After teaming up with two other investors who had been duped in a similar way by crypto-currency scammers, Yang launched a fake mobile application and token called “Baiye Chain. His operation reportedly racked up more than 20 Bitcoin Era members in Lianyungang, Yancheng, Huai’an, and other regions.

After deceived investors in Lianyungang reported the “Baiye chain” to the local police, authorities tracked down and raided the company’s office. They arrested Yang and his colleagues, who reportedly had already made over 300,000 yuan (almost USD 43,000) in profits by that time.

Scams intensify as the launch of the CBDC approaches

As reported by Cointelegraph, crypto-currency scams in China have intensified in the context of CBDC tests being conducted in various local cities. The scammers now pose as “CBDC test” groups, promising high returns on initial investments, usually starting at around 10,000 yuan (USD 1430).

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Earlier this year, the People’s Bank of China clarified that there is “no timetable” yet for the formal launch of the digital yuan.