Busted: Pu’er tea token founder arrested on fraud allegations

Some tea token members were arrested for allegedly for allegedly DUPING its investors the whooping sum of $47 million.

According to Guangdong Daily, a provincial government organ in China, 6 individuals were arrested on Monday morning by the police in SHENZHEN whom they believed had allegedly duped 3000 Chinese investors by selling a cryptocurrency backed up with false claim.
A firm based in Shenzhen called PEB is believed to have been formed by the 6 suspects in the month of Jan 2017, where they claim to issue a blockchain-powered token named PU’ER COIN.

Pu’er tea product

After promising the buyers of the token that they are entitled to hold a contract representing ownership of a certain amount of the PU’ER Tibetan tea the firm has in stock, worth billions of dollars, turned them down by running away with the money.

Luck ran out of them as they were cited in a hotel and were being arrested at the spot by the police in Shenzhen. An investigation carried out by the police revealed that the firm only had “very limited amount of the tea in stock”.

The brains behind this fraudulent project promised the investors high-short term returns to the investors via social media promotions and road shows at high-end hotels.

The project team manipulated the secondary market using its own funds to drive up the token price twentyfold over the course of 2017. Prior to that, they were able to convince significant number of investors. the firm was fined $20 million dollar for spreading false claims in an advertisement after they were arrested earlier this week.

The China Govt. the security forces and the law enforcement agencies in China have been fighting so hard to stop illegal fundraising in China. Not too long ago, before arresting the team members of the tea tokens, the police had already arrested the founders of an alleged nationwide crypto pyramid scheme that successfully amassed away with the sum of $13 million from over 13,000 people

Editor-in-Chief @Coindaily_co and Bitcoin enthusiast