Collect gold 1.3 billion in 8 months, how is this pyramid selling coin done

Block beat BlockBeats 0x28

Pyramid selling money is common, cheat to buy money to hide the operation of the villa god or the first time to see.

The public security bureau of xuchang jianan district in central China's henan province has uncovered a massive online pyramid selling case in which the main suspect manipulated an online platform to engage in pyramid selling activities, CCTV financial news reported Wednesday.

The company sells Taiwan dollar "seeds" through a platform called IAC. Attract customers with high returns, adopt the typical pyramid selling system, pay to register members, pull people to develop offline to buy "seeds", set up the pyramid selling organization with "seeds" as the center. Meanwhile, blockchain, big data and artificial intelligence and social media platforms have been wildly promoted across the country.

Interestingly, according to a local police report, the suspects stashed as much as 1.3 billion yuan in a single villa, which was worth 10 million yuan.

From the pyramid selling currency cases in the currency circle, the swindlers basically cheat to the money began to squander, sports cars, young model, yachts, happy, this kind of cheat to the money after the most stable real estate investment in China is really very few. With 1.3 billion yuan in cash seized at the scene, this pyramid retail currency fraud organization can really be called the most simple pyramid retail currency fraud organization.

The most "earth" pyramid selling currency

The recipe is familiar, and the taste is familiar. In the same way as the "rebo fed" and "vika COINS" reported by BlockBeats, IAC's platform openly sells the "seeds" of the platform, and claims that the "seeds" only circulate within the platform can increase in value.

Looking back at all the pyramid schemes in history, "seed" is probably the dirtiest name. But the magic is, this unusual "soil" and not famous "seed" price 2,000 yuan. What's more amazing is that the random "seed" with the name actually cheated more than 1.3 billion yuan.

The truth is that the "seed" that cheated perhaps hundreds of thousands of people adopted a very simple and common model.

"Seed" needs the activation code of the old member to be able to buy above all, this kind of old member recommends new member is the feature that go up and down line. Of course, before becoming a member to pay fees, after becoming a member to pull people into get more compensation, layer upon layer, pull people to buy more "seeds", the more the higher commission. Seeing this, an obvious pyramid scheme appeared.

But the smart thing about pyramid schemes is that all the takedown rewards are for "seeds" -- that is, no matter how many people you pull, you get the seeds you can't see. As long as the MLM fraud organization received the new members of the money, immediately withdraw. That's why pyramid schemes end up leaving so much cash behind.

The pyramid scheme fraud organization that loves cash most

The man behind the "seed" pyramid scheme returned to China in August 2018, and 27 suspects were arrested by police. At the villa of the ringleader in jinhua, zhejiang province, police found 1.3 billion yuan in cash.

The police announcement contained several details that revealed a predilection for cash among pyramid schemes. Police seized 1.3 billion yuan in cash at the scene. And the spot, it is a villa that a value ten million that principal culprit buys, use to put the money that cheat to come specially.

One of the three rooms in the villa had nothing but a table full of money. Not only that, the ringleader also filled a small storage room with cash, and another room with a lot of suitcases.

The fraud group's desire for cash goes far beyond that. It employs a specialized team of withdrawals, paid a 2 percent commission, and if the customer withdraws $1 million, he gets $20,000. In the many accounts of the fraud organization, the largest amount of daily withdrawal of hundreds of thousands of, the least is in the ATM, the card limit of all 20,000 yuan withdrawal.

According to CCTV finance and economics, the fraud organization started its pyramid selling activities in November 2017 and was caught in August 2018. In more than nine months, IAC only registered more than 900,000 members. There are three levels of organization. The first level is the designer of the whole platform, who is also the main sponsor, and manages the whole team. The second level is responsible for the operation and maintenance of the platform, and the third level is promoters, cash collection teams and high-level members. & have spent

More interestingly, the police found that the shell company, registered in hangzhou, whose legal representative had been abroad for years, was running a fake company under its own name. Pyramid selling fraud organization posing as its fraud activities, pyramid selling team also hidden in the long term, even in the domestic promotional activities are hired temporary.

Then again, why can such a simple pyramid scheme cheat so many people? In addition to the victim's radical view of wealth accumulation, a bigger reason is the lack of relevant information to accumulate to identify fraud. As the Spring Festival is approaching, I suggest you take a look at it. Block beat BlockBeats article, accumulate more knowledge to identify new scams.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia