The founders of an alleged cryptocurrency scheme that reportedly manipulated over 13,000 people for 86 million yuan ($13 million) have been arrested by the police in China’s northwestern city of Xi’an.

A local media source Huashang News, reported on Wednesday (18th April), that the scheme was launched on March 28th, 2018. According to the report the primary suspect who’s surname have been revealed as Zheng had been planning this scheme for months along with three other co-conspirators.

The report also revealed information from the investigation conducted by the police, as per the report, in an attempt to allegedly con potential investors via the pyramid scheme, the suspect made use of the Da Tang Coin (DTC) that is linked to DTC Holding – a firm registered in Hong Kong and is looked after by the suspect itself.

According to the report, in several promotional events conducted in almost all the cities of China, the scheme made bold claims that new individuals can earn up to 80,000 yuan ($13,000) every day with an initial investment of $480,000 to buy the (DBTC) at $0.50 per token.

The report also revealed that, in a bid to make the project look even more believable, a foreign-looking man was hired by the suspects to fill the post of the chairman of DTC Holding. This move was taken in an effort present to the company as a genuine international blockchain technology startup.

If you search the company’s name on the internet it directs you to various reports published by genuine Chinese media channels.These reports include an article published by China Daily back on March 21st, which states that a man named Evgeny Subbotin attended a blockchain event in Xi’an presenting himself as the chairman and general manager of DTC Holding.

The report also further revealed that the company went all out in hyping up the DBTC, claiming that it would be listed on various exchanges like Shangya, U-Coin, and ZB.com.

Apparently, even Subbotin was also found promoting the token as he claimed that the DBTC would eventually have many real-life uses including retail payments, hospitality, and education.

Following various complaints made by the citizens of Xi’an who were duped by the scheme, the police force of that Chinese city reportedly launched an investigation on April 5th.

The news has emerged at a time when China’s Ministry of Public Security, the agency assigned with the duty of supervising the country’s police forces, has raised its efforts towards targeting financial crimes. Back in the first month of 2018, the ministry had made an announcement revealing that it would continue cracking down on pyramid schemes linked with cryptocurrencies.