40,000 ETH worth of investments has evaporated into thin air after listed crypto pulled an exit scam. HeroChain, a blockchain project focusing on gambling, is reported to have made away with investors’ funds after hyping up the project and disappearing.

To attract investments, the leaders of the project scouted for a crypto exchange which listed the HEC coin after which the project’s official websites went offline leaving unsuspecting investors in the dark. The project was based in the Chinese Hunan province.

According to 8btc, a news outlet, the HeroChain blockchain project had attracted investments worth 46 million U.S dollars from more than 100 investors in two months. The purchase of HEC coins was done in ETH. Unfortunately, by the time local police unearthed the exit scam, the scammers had already shared the loot among themselves including promoters and only roughly 3 million U.S dollars was recovered.

So far, local police have arrested 15 individuals with 21 individuals suspected to be involved with the listed crypto scam. Even though China has a hard stand on cryptocurrencies, more crypto-related scams have been cropping up in the country. Chinese police have also been in the lookout for fundraising events involving cryptocurrency since it’s considered illegal.

At the beginning of the year, another crypto scam structured as a pyramid scheme was unearthed by law enforcement agencies in China. Investors had already having poured in 193 million U.S dollars. Police arrested 27 individuals in connection to the crypto pyramid scam. The proceeds of the pyramid scheme were reportedly used to buy a villa worth millions.

It is still in China that another crypto scam was revealed in 2018 having already attracted 13 million U.S dollars in just 14 days.

Do you think the increase in crypto scams in China is due to the country’s harsh stand on virtual currencies?

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