China's Blockchain Farm Bank: 3,000 People Surrendered, Volume 48 Million Dollars!

Blockchain is alleged to have destroyed finance, economy and society, but this technology is presently very fragile within the boundaries of China . Shenzhen Police announced that he arrested six suspects allegedly involved in scandal-related events by collecting 3,000 cryptographically illegal 307 Million RMB (worth $ 48.2 million) from the user

Shenzhen Puyin Blockchain Group is a kind of company supported by Pu'er a valuable and high-quality tea species grown in the area of ​​ Yunnan according to the information gathered by the police department. Tea-based money collection with token.

Good quality Pu'er tea leaves have the value of 20,000RMB ($ 3,140) . The company reflected the value of the asset behind the token's value. As the value of Pu'er tea increased, Puyin token value increased to the same value and offered attractive profit for investors.

Company investors were attracted to popular social media channels, investment forums and luxurious he spent a lot of money on advertising tours to advertise.

While China had forbidden its first digital money offerings in September 2017, it had been raising money by raising its own token market by stairway methods.

Shenzhen Puyin decided not to apply to ICO which is a public fund raising method .

With this method, Shenzhen Puyin decided to use its own token It has sold to 3,000 investors and totaling RMB 307 million ($ 48.2 million) . The company then used the funds collected from the investors to get their own token again and manipulated the token price.

After the company sold the investor at the capacity of the company, the founders of the company took the money of the investors and lost money.

In December of 2017, some investors reported that they could not sell Puyin tokens, as the police founders had promised to investors instead of investing in Pu'er tea. Shenzhen Puyin stated that Ping Shan Tea Group Ltd. originating from Hong Kong Hong Kong the other party to the local media channel had trouble paying.

Ping What happened to Shan Tea reminds us of the Dot-com ball that was living in NASDAQ in 2000. Ping Shan Tea registered in Hong Kong office in December 2017 Blockchain Group Co., Ltd. changed to. The company's shares had risen after the name change. However, after the last operating capital (10 + 2) made on May 10 the company failed to pay the debtor and the company assets began to be turned into cash.

Police stressed that they should be more careful when investing in the public statement

Do not get bogged down immediately in the case of the blockchain. High returns are often the product of high incomes offered by criminals. "