Police officers in Chinese city of Xuchang detained 27 people suspected of organizing a pyramid of crypto-coins I Am a Clown (Iac), whose capitalization was about $ 193 million.
This is reported by the state broadcaster CCTV.
The stolen funds – more than 1.3 billion yuan ($ 193 million) in cash – were stored in a specially purchased home.
Iac has become a platform for the development of a large-scale social network based on blockchain technology, Big Data and artificial intelligence. Acting in line with Ponzi's classic scheme, company representatives asked to invest in the project, a criptomoeda, in return promising a huge income.
It is also reported that the main suspects were hidden outside China and managed the platform remotely, with the help of hired personnel. Fraudsters used fake corporations to hide their personalities.
The suspects were arrested in August 2018, but investigators disclosed the details of the operation only this week.