A sixth Chinese national has been apprehended in Sydney, Australia, as part of an ongoing investigation into a sprawling cryptocurrency scam with ties to the United States. The alleged scam managed to siphon off over $100 million from unsuspecting American victims through a convoluted scheme involving manipulation of cryptocurrency and forex exchanges.
The individual in question, a 34-year-old Chinese citizen residing in Sydney, is accused of playing a key role in the fraudulent operation. It is claimed that the suspect employed a combination of traditional bank accounts and cryptocurrency wallets to facilitate the movement of illicit funds, aiming to launder the proceeds of the cryptocurrency scam.
The initial tip-off to Australian authorities came from the US Secret Service in August of the preceding year, highlighting the connections between the crypto scam and Australia. Subsequent investigations by the Australian Federal Police (AFP) led to the uncovering of a criminal network that heavily relied on Chinese students living in Australia to further their fraudulent activities.
The modus operandi of the scam was intricate and multifaceted. The syndicate employed a clever fusion of various online platforms, including dating websites, employment portals, and messaging apps, to lure unsuspecting victims into their trap. The victims were enticed to invest in both fake and legitimate cryptocurrency and forex trading websites, with the perpetrators going to great lengths to fabricate positive returns on investments. This strategy aimed to deceive victims into believing in their success, ultimately coaxing them into injecting more funds into the scam.
Chinese crypto scams
The latest arrest is centered on the alleged involvement of the individual in orchestrating the exploitation of Samoan nationals on temporary work visas. These Samoan workers unwittingly became a part of the operation, with their identities being exploited to establish bank accounts intended for the offshore laundering of ill-gotten gains. In return for the use of their identities, the workers were reportedly paid a nominal fee, completely unaware of the criminal activities they were inadvertently aiding.
The arrest itself was carried out after incriminating evidence was captured on closed-circuit television (CCTV) cameras. The suspect was observed depositing cash into compromised accounts and subsequently handling receipts of transactions from these accounts. Law enforcement later conducted a search of the suspect’s residence, during which they seized electronic devices and a substantial quantity of tobacco products. The charges leveled against the arrested individual include allegations of handling criminal proceeds amounting to $100,000 or more, utilizing false identities for illicit services, and evading excise duty on tobacco products.
Detective Superintendent Tim Stainton, addressing the growing prevalence of cyber-enabled scams, urged the public to exercise caution when dealing with unfamiliar entities on the internet, particularly in the realm of investment opportunities. Stainton’s advice echoes the age-old adage that if an opportunity seems too good to be true, it likely is. The apprehended individual is scheduled to make a court appearance on September 7, facing a range of serious charges related to the cryptocurrency scam.
