China made it clear that it isn’t going to tolerate any sort of crypto-related activity in the nation. After successfully seizing a number of mining rigs in the nation, China has recently found a Filecoin miner Ponzi scheme, capturing around $62 million worth of crypto assets.
According to a local media report, the event occurred in the Xinhua city of China, wherein 31 people have been arrested under the allegations of conducting Ponzi schemes, fooling other people, and snatching away their money. These people are reportedly associated with a Shanghai-based Filecoin miner maker IPFSUnion.
As a part of the crypto crackdown implemented by Chinese authorities, the police confiscated several crypto assets, including Tether (USDT), Ether(ETH), and Filecoin (FIL). These coins were worth a total of $62 million, all distributed among various tokens.
Filecoin miner, IPFSUnion assisting the police
According to a Chinese news outlet report, the police have caught these suspects moving across several cities in China. These include Shanghai, Wuhan, and Shenzhen. However, not much light was shed on the matter of whether all of these suspects were a part of the Filecoin miner maker or just a few of them.
Colin Wu, a well-known Chinese crypto journalist, has recently released more information on the matter on his Twitter handle, stating that the firm has cooperated with the police in order to make it easier for them to apprehend the convicts.
“Star Alliance stated that the reason was that the suspect used suspected illegal funds to purchase and therefore assisted in the investigation. At present, most members have resumed normal work and will resume services after the assistance investigation is completed,” the tweet said.
In accordance with the directions by the Chinese police, the firm will have to limit the number of miners working in the data centers to a specific number. Once the investigation is complete, the firm will be allowed to operate at its full capacity.
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