China targets cryptocurrencies in online pyramid scheme crackdown
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The ministry will act jointly with the industrial and commercial department to stamp out pyramid-type schemes, besides punishing those who swindle students and vulnerable groups, the ministry said in a statement on its website.
Chinese regulators have moved to rein in financial risks associated with virtual currency trades and pyramid schemes.
A court this month sentenced two people to life imprisonment for fraud in a pyramid scheme involving 15.6 billion yuan ($2.44 billion) that sucked in more than 200,000 people.
Questions & Answers
Q.Which government bodies will be involved in this crackdown?
Which government bodies will be involved in this crackdown?
The public security ministry will act jointly with the industrial and commercial department to stamp out pyramid-type schemes.
Q.What groups are specifically mentioned as targets for swindling by these schemes?
What groups are specifically mentioned as targets for swindling by these schemes?
The ministry mentioned that those who swindle students and vulnerable groups will be punished.
Q.How many people were affected by the large pyramid scheme mentioned?
How many people were affected by the large pyramid scheme mentioned?
The pyramid scheme that led to life sentences for two individuals sucked in more than 200,000 people.
Reader pulse
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