$47-Million-Worth Tea Fraud
May 21, 2018
As Guangdong Daily informs, police of Shenzhen arrested six persons who allegedly deceived 3,000 Chinese investors for 47 million dollars by selling cryptocurrencies backed, as they assured, by tea.
The suspects founded a firm in Shenzhen named PEB that has been issuing a blockchain token Pu'er Coin since January 2017.
As the project’s website says, token purchasers can make a contract which grants them right to some amount of Tibetan pu’er tea that cost billions of dollars. Although the token can be successively sold at secondary market Jubi.com, another web site asserts, the contract may also generate 12% annual revenue given investors prefer freeze their funds for 12 months.
According to the police investigation, the firm promised high short-term return for investors in its ads though it had limited amount of tea in stock. The police also stated, the project has successfully attracted dramatic numbers of investors thus having boosted token price twice during 2017.