In a significant crackdown on illicit cryptocurrency activities, Chinese authorities have apprehended six individuals suspected of orchestrating a sophisticated scheme amounting to 2.94 billion yuan, equivalent to approximately $300 million.

As reported by local media outlet Chinanews on May 10, the suspects were detained by The Public Security Bureau of Panshi in the Northeastern Chinese province of Jilin. Allegedly operating an underground bank, the suspects utilized cryptocurrencies as a means to facilitate the exchange between Chinese yuan and South Korean won.

Authorities assert that the illegal operation, purportedly based in South Korea, involved a group of six individuals. Reports from law enforcement indicate that the suspects deceived unsuspecting investors during the exchange process, absconding with their funds to China.

The investigation into the illicit activities was initiated following the detection of irregular transaction patterns linked to the suspects' accounts. This discovery prompted an extensive probe that ultimately led to the apprehension of the individuals. During the operation, law enforcement seized numerous bank cards and equipment associated with the fraudulent activities.

This recent incident underscores the escalating prevalence of cryptocurrency-related scams, mirroring previous reports of fraudulent dealings in South Korea. Just on March 26, crypto.news highlighted the arrest of fraudsters who swindled $4.1 million from a South Korean citizen through a deceptive crypto investment scheme.

Globally, authorities have intensified their efforts to combat such fraudulent schemes. In Austria, law enforcement collaborated with international agencies to dismantle a counterfeit investment scheme that resulted in losses totaling €6 million for unsuspecting investors.

In a parallel case reported last week, authorities in the United Kingdom arrested two individuals for exploiting a cloned version of the prominent crypto platform blockchain.com, ultimately defrauding investors of $7.1 million.