Chinese Police to Bust Alleged $13M Crypto Pyramid Scheme

Scheme called Da Tang Coin launched in March 28 this year after months in preparation
18 April 2018   614

Police in the Chinese city of Xian arrested the founders of the crypto-pyramid, which managed to raise 86 million yuan ($ 13 million) with the participation of 13,000 investors. This is reported by CoinDesk.

The scheme was launched on March 28 this year after several months of preparation.

The police said that in order to attract investors, the Da Tang Coin (DBTC) cryptocurrency was used, connected with DTC Holding, which was registered in Hong Kong and was controlled by suspects.

During various promotional events held in many locations throughout the country, the scheme's organizers stated that the new members could start earning 80,000 yuan ($ 13,000) a day, buying a DBTC of $ 0.50 per token for $ 480,000.

The profitability of the token was to be ensured by commissions after the creation of controlled networks and access to exchanges.

To make the scheme look more convincing, scammers hired a man with the appearance of an foreigner for the role of chairman of DTC Holding, the police said. According to their idea, such a trick would make investors believe that they are dealing with an international blockchain start-up.

Reports on the activities of DTC Holding were published in various Chinese media. So, on March 21, the China Daily published the news that the chairman and CEO of the company, Yevgeny Subbotin, visited the blockchain-event in Xi'an.

The message also says that DTC Holding is actively promoting its digital currency, promising that it will soon be listed on such exchanges as Shangya, U-Coin and Subbotin stated that the token will be used in the real world, including for making payments, in the sphere of hotel business and education.

The Xian Police initiated the investigation on April 5 after they began receiving messages from residents of the region affected by the scheme.

Diffusion 2019 to Gather Crypto Hackers in Berlin

World most interesting tokenised protocol teams joined forces to create one of the biggest devconf in the world
20 September 2019   103

19th-20th October 2019, Berlin, one of the IT capitals of the world, will gather representatives of blockchain, AI, IoT and Big Data industries across the globe. 350 developers are going to test their skills, by hacking with 25m+ lines of open source code. Thousand of prizes awaits the winners.

This two-day event will focus on the practical application of open-source distributed ledger technology, smart contracts, machine learning and programmable tokens, to create a new data layer.


Diffusion 2019 Attendants
Diffusion 2019 Attendants

The conference will last for two days and is focused on the practical usage of open-source blockchain technology, machine learning, programmable tokens and smart contracts with a goal to create a new data layer. 

If you are not a skilled programmer, you will find what to do, Join panels, chats, workshops. Discuss the latest topics, such as token economics, blockchain for enterprise, AI, deep learning and more. Whether you are a dev, work in IT or tech industry, geek or just interested all that new - this is a place for you. You will be able to discuss things and share knowledge with lead developers, professors, start-upers and CEOs.

Part of Diffusion 2019 Attendants
Part of Diffusion 2019 Attendants

The event will take place at the Factory Berlin.

Hype.Codes team is happy to report that our journalist is going to the Diffusion 2019 too! Anton will provide you, our dear readers, with the freshest news and announces straight from the Factory.

Also, check out the latest conference's partnership with ETHBerlin.

And now the most interesting thing. You will be able to to take part in a hackathon for free!

Apply for free place at Hackaton now!

Not a coder, but still want to attend an event? 

Get your ticket here!