China Police Busts $1.5 Billion Cryptocurrency Gambling Racket

Jul 13, 2018 at 08:04 Update Date :Jul 13, 2018 at 08:04 UTC

With the football World Cup at the brink of ending, China police officers have uncovered a gambling racket that had been operating a betting platform online, targeted chiefly towards football fans making bets in the ongoing football World Cup. The police from Maoming, of south-east China’s Guangdong province, has announced that they successfully carried forward with the crackdown on the gang. The gang transacted mainly in terms of cryptocurrencies like Bitcoin, Ether, and Litecoin approximately worth $1.5 billion.

Around 540 people were arrested in connection with this case, which is considered illegal in Involvement in such an online betting platform is likely to attract criminal charges. The Guangdong Provincial Public Security Department made simultaneous raids in Shenzhen and Guangzhou and arrested six. 21 public security agencies cooperated, alongside local police from Chengdu and Guiyang playing a key role.

The betting portal, using a mobile application for the operation, had been operational for eight months. It had attracted a considerable membership of about 330000, coming from various areas and countries. The police authorities came to know of this ring in May and went on to execute a well-coordinated set of sweeps to capture the ringleaders. Director of the Public Security Bureau and the deputy governor, Li Chunsheng, called for this operation and the Guangdong police acted promptly.

It seems that the gambling platform used a pyramid scheme that called upon members/users to pass on the application among their acquaintances for upping their own commissions. The police stated that the tactic of the gang was of the bookmaker allowing a small number of people to win by manipulating the odds on the basis of the betting ratio and earned profits from the trick. By encouraging threats to public security like robbery, bankruptcy, theft etc, the betting platform had been an active danger to the law and order situation.

The police have confiscated assets valued at around $750000 connected to the business, besides the cryptocurrency worth $1.5 billion that they managed to seize.

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