Chinese fraud ring laundered over $6m in Tether’s USDT from 66,800 Indian victims: report

A Chinese court sentenced nine individuals for running a telecom fraud ring that defrauded over 66,000 Indian victims and reportedly laundered proceeds through Tether’s USDT.

Nine individuals have been sentenced to prison in China for their roles in a telecom fraud scheme that defrauded over 66,000 victims in India, according to a report by The Global Times.

The group stole 517 million Indian rupees (about $6.2 million) by operating fake investment platforms and using false identities and was led by a man surnamed He, who started the operation in May 2023 by renting office space in Shandong Province.

He recruited team members and set up overseas servers as well as handled contact with Indian companies and coordinated the flow of stolen funds. He stated that the group lured Indians through messaging, promising monthly returns of 8-15% on 1,000-rupee (around $12) investments via the so-called SENEE platform.

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When deposits surpassed the promised returns, the scam team would shut down the platform or convert debts into equity to freeze funds, the report reads. The funds were later laundered through third-party platforms and converted to Tether’s USDT (USDT) stablecoin, and subsequently exchanged into Chinese yuan or U.S. dollar with a 15% cut. The report doesn’t say which platforms the scammers used to cash out.

One of the scammers, surnamed Li, portrayed herself as a “wealthy Indian woman” who achieved success through fund investments, the report reads.

The group also created fake documents and websites to appear legitimate, what the Chinese court described as a “sophisticated criminal syndicate marked by professional organization,” the report reads. The sentences range from five years to nearly 15 years in prison, along with fines.

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