DBTC ICO Ponzi scheme busted in China, $13 million in losses
DBTC was a short-lived ICO primarily targeted at Chinese investors.
Zhang and Li Mou conceived DBTC last October, but didn’t actually launch an ICO until March 28th this year.
And what an ICO it was.
Clearly targeting gullible idiots with too much money, top DBTC ICO investors paid $478,000 each on the promise of a daily $12,768 ROI.
DBTC tokens were also sold at a rate of 48 cents each.
13,000 DBTC ICO investors signed up and, through the half mill package and separate token investment, collectively invested $13 million.
To convince investors from China and Cambodia that DBTC was the real thing, Zhang and Li Mou hired a token white guy to front the scheme.
DBTC’s marketing strategy saw the company claim to be a “high-tech multi-national corporation”, run by management with a “strong financial background”.
Victims cited these marketing claims as the primary reason they believed DBTC was a legitimate MLM cryptocurrency opportunity.
Not surprisingly, DBTC collapsed shortly after its March 28th launch.
This prompted complaints from investors to Xi’an police department who, following an internal investigation, rounded up and arrested nine suspects on April 15th.
HSW report Xi’an police were able to freeze 42 bank accounts but don’t state how much was recovered.
In the wake of the ICO Ponzi, Xi’an authorities have announced a “zero tolerance” crackdown on “cyber-trafficking pyramid schemes”.
N.B. The Chinese DBTC ICO Ponzi scheme doesn’t have anything to do with the previously launched DebitCoin cryptocurrency or Deluge Network.