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Nidhi Kolhapur
Nidhi Kolhapur
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Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Apr 14, 2025 07:42 UTC
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China Fraudsters Jailed for $6M USDT Crypto Scam Targeting Indians
A Chinese fraud ring used fake online personas and investment platforms to steal $6 million in USDT from thousands of Indians.
The scheme involved building trust through social media and chat apps, promising high returns, and then shutting down.
Nine individuals were convicted and sentenced to prison, with Chinese authorities warning against similar online scams.
A local court in China recently sentenced nine Chinese fraudsters to prison terms over defrauding Indians of about $6 million through USDT fraud. Notably, the scheme involved using translation and chat software to befriend foreigners, gain their trust and trick them into investment by defrauding their money.
Indians Were the Victims
The People’s Court of Heze Economic Development Zone in Shandong Province heard the case, which involved a total of ₹517 million (about 40 million RMB). The victims were all from India, and the scam was designed to trick them through a fake investment platform.
The nine accused were found guilty and given prison terms ranging from 5 to nearly 15 years, along with fines.
Mastermind Behind the Scam
The leader of the group, He Moutian, started the operation in May 2023 by setting up an office in Heze, China. He gathered several people to form a fraud gang and used overseas servers to avoid detection. The group posed as successful investors and promoted a fake investment platform called SENEE.
How the Scam Worked
The group used translation and chat software to talk to people in India. They pretended to be friendly investors and promised high monthly returns of 8% to 15%—even on small investments starting from ₹1,000. Once the victims invested larger amounts, the scammers shut down the platform and froze their funds.
The stolen money was used to buy USDT (a stable cryptocurrency) through third-party platforms, then converted into RMB or US dollars. The group kept 15% of the total amount as profit.
Creating a False Image
To appear more believable, the gang shared fake lifestyle photos like gym selfies and travel pictures. They also set their app locations to different Indian cities. A fake company website was created, complete with edited licenses, registration certificates, and business documents—all to make the platform seem real and trustworthy.
One of the scammers, Li Mouwang, admitted to pretending to be a rich Indian woman who made money through smart investments. She used chat apps to build fake relationships with Indian men and convinced them to invest in the fake SENEE fund.
The court found that the group worked in a highly organized way, with each member having a clear role in the scam.
Be Cautious of “Easy Money”
The judge said that while this case involved victims from another country, online scams are also common in China. He warned the public not to trust offers that promise quick money, insider tips, or cashback rewards for placing orders—these are all common signs of fraud.
Authorities in China are increasing efforts to crack down on online and telecom fraud. The court encouraged other fraudsters to surrender and cooperate with investigations for a chance at lighter punishment.
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