In China, 34 individuals have been convicted for organizing a fraudulent cryptocurrency platform called OURBIT, resulting in the theft of approximately $64 million from 30,000 investors, local media reports. A court in the city of Ezhou found that the group operated under a complex scheme that allowed them to pose as experts and manipulate data to make the platform appear legitimate.
This is reported by Business • Media
The OURBIT platform was positioned as an exchange with licenses from the USA, the UK, and Singapore. It offered fake trading tools such as
“zero slippage”
and stop orders, while also displaying fabricated cryptocurrency quotes. In reality, all transactions were fake, and users lost their investments.
Methods of the Fraudsters
The fraudsters created groups on WeChat, where fake participants showcased false profits. Victims were persuaded to invest in high-leverage deals. In the event of a win, accounts were blocked, and new deposits were required for unlocking, which also disappeared.
Court and Consequences
OURBIT operated as an organized structure with departments for technology, marketing, and user acquisition. The perpetrators hired agents and sub-agents, each receiving a percentage of the losses incurred by recruited clients. One victim reported losing over $400,000.
The court found the group guilty of intentional fraud and issued sentences ranging from three to twelve years in prison. All convicted individuals are also required to pay substantial fines. The judge emphasized the importance of caution when investing and warned against the risks of trusting dubious get-rich-quick schemes.