A Chinese court has handed down prison sentences to nine individuals involved in a telecom fraud operation that swindled more than 66,000 victims in India, while allegedly laundering the ill-gotten gains through Tether’s USDT.
The group, responsible for defrauding over 66,000 individuals in India, has received prison sentences following their involvement in this telecom fraud scheme.
They managed to steal 517 million Indian rupees (approximately $6.2 million) by setting up fake investment platforms and using false identities. Their operation was led by an individual with the surname He, who initiated the scheme in May 2023 by leasing office space in Shandong Province.
He enlisted team members, established overseas servers, and communicated with Indian firms while coordinating the movement of stolen funds. He mentioned that the group targeted Indian investors by promising returns of 8-15% on 1,000-rupee (around $12) investments via a platform referred to as SENEE.
When the deposits exceeded the promised returns, the fraudulent team would either shut down the platform or convert the debts into equity, effectively freezing the investors’ funds. The stolen money was subsequently laundered through third-party platforms and converted into Tether’s USDT stablecoin before being exchanged for either Chinese yuan or U.S. dollars, taking a 15% commission in the process. The specific platforms used for cashing out remain undisclosed.
One of the scam participants, known by the surname Li, represented herself as a “wealthy Indian woman” who claimed to have found success through her investment activities.
The group also fabricated documents and websites to lend an air of legitimacy to their operation, which the Chinese court described as a “sophisticated criminal syndicate characterized by professional organization.” Sentences for the individuals involved range from five years to nearly 15 years in prison, in addition to fines.