Imagine discovering a lucrative investment application run by a supportive woman claiming to offer 15% returns, only to find out it was a sophisticated scam from another country. This scenario materialized for tens of thousands in India, who fell victim to a cryptocurrency fraud operation.
A Chinese court has sentenced nine perpetrators for a scam linked to cryptocurrency that deceived over 66,000 Indian participants, extracting nearly ₹52 crore (approximately $6.2 million). The orchestrator, identified only by the surname “He,” initiated this scheme in May 2023 from Heze, Shandong province.
“Nine individuals were sentenced to prison terms in China along with fines for involving in a telecommunications fraud scheme targeting Indian victims. The scam siphoned 517 million Indian rupees ($6.2 million) from 66,800 victims through fabricated investment platforms.”
— Global Times (@globaltimesnews) on April 13, 2025
The operation relied on a deceptive investment application named SENEE. The fraudsters assumed the personas of affluent Indian women online, showcasing fabricated profiles and glamorous images to lure victims with promises of substantial monthly returns on minor deposits. A mere ₹1,000 could supposedly yield an 8–15% monthly return. Unfortunately, as larger investments were made, users found themselves locked out or had their funds converted into inaccessible “equity.”
Money Laundering via Cryptocurrency
The group did not merely collect investments; they also became adept at laundering the stolen funds. Once the victims had been fleeced, the scammers utilized third-party services to clean the money before converting it into Tether (USDT), a prevalent stablecoin. The funds were either cashed out in yuan or U.S. dollars, with the criminals retaining a 15% transaction fee.
Legal Proceedings and Sentencing
During the trial, prosecutors outlined the organizational structure of the criminal group, detailing specific roles, task distributions, and profit-sharing arrangements. Sentences for the defendants ranged from 5 to nearly 15 years, accompanied by monetary penalties. Presiding Judge Liu Xilei emphasized that China is taking such fraud cases seriously, advising anyone connected to similar fraud schemes to voluntarily come forward before the law intervenes.
This case serves as a cautionary tale on the growing sophistication of international crypto scams and the challenges posed by their cross-border nature. In response to schemes like this in India, government measures such as the Sanchar Saathi initiative are already working to disconnect numerous suspicious phone numbers and blacklist fraudulent devices, marking a start in the battle against digital scams.
While the convictions of this gang signal progress, the global aspect of cryptocurrency fraud remains a significant hurdle for enforcement. Straightforward online education is crucial; if an opportunity seems too good to be true, it often is.
