The government of China has its hands full with cryptocurrencies at the moment. The Ministry of Public Security officials claimed that it took down more than 170 gangs that were involved in running cryptocurrency scams in the region. The threat actors were also found to have been involved in money-laundering charges. These threat actors were acting as enablers for providing the tools for the cybercriminals in the region.
A significant amount of these threat actors got their money by running illicit coin mining operations. The massive fraud scheme has been named as the two-card scammers by the Ministry officials. They were contacting the unsuspecting victims from outside of China. These threat actors also convinced their victims to invest money into scam crypto projects that were fruitless.
Scammers were Using Smuggled Phone Cards from China to Lure People into Crypto Scams
The ill-gotten or black money that was raised from illegal crypto mining was used to purchase a massive amount of phone cards from China. These cards were smuggled across the border and were purchased by scammers who wanted to run an elaborate crypto scam within China. From the outside, these scammers used to make calls to the Middle Kingdom region, also known as Mandarin Zhongguo.
The threat actors were outside of the network services providers and felt safe to run their crypto scams. These calls allowed the scammers to rack in money from unsuspecting victims. This money was used to run a massive money-laundering operation in the region. The Ministry of Public Protection claimed that intercepting the operations safeguarded the interests of the citizens.
The Massive Crypto Scams might have been the Force Behind Initiating a Crypto Ban in the Region
The government of China has started a cryptocurrency ban in the region by claiming that a massive number of crypto miners are using illegal means to power their farms. The discovery of a huge crypto-related crime syndicate can be the driving force behind introducing more stringent crypto mining policies in the region. At base, the Chinese administration has claimed that the increasing pollution is the main cause of the crypto ban.
However, as time passes, more crypto-related crimes and scams are surfacing in the region. The region of Western Qinghai has imposed a blanket ban with the help of the local police force. The search engines and social media accounts in China have also banned all crypto-related accounts and businesses.