Filecoin (FIL) Miners Charged by Chinese Authorities in Alleged $83,000,000 Scheme
A Chinese Filecoin (FIL) mining firm is under investigation by Chinese authorities for allegedly operating an $83 million pyramid scheme.
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Legal Action Initiated Against Prominent Chinese Filecoin Mining Company for Alleged Pyramid Scheme
A recent update on social media reveals that a regional court in Guangxi autonomous region's Pingnan county has commenced criminal proceedings against Shenzhen Shikongyun Technology, one of China's major Filecoin mining enterprises, along with its four top executives.
The prosecution asserts that the company employed misleading tactics to lure investors into participating in Filecoin mining on its platforms by inflating the technology's profit potential. Prospective participants were allegedly compelled to pay for mining machine purchases or rentals to engage in the mining operations.
The prosecutors' claims further state that the company established an official website and a WeChat account to promote its mining activities, as well as utilizing platforms such as filpool.io and bpool.io.
Between February 2021 and May 2022, the company allegedly accumulated nearly 100,000 members, resulting in a reported total of ¥606.95 million (approximately $83.3 million) revenue according to the allegations.
Notably, China had prohibited all cryptocurrency transactions within its mainland in September 2021. In contrast, neighboring Hong Kong has been adopting a more crypto-friendly stance.
Launched in 2020, Filecoin serves as a decentralized file sharing and storage solution, designed to offer dependable long-term storage options and competitive pricing.
At the time of composing this piece, Filecoin is trading at $3.80, reflecting a 5.4% decrease in the past 24 hours.
Aug 17, 2023
