300 million! The Pu'er coin fraud case is a virtual currency that claims to be used as a mortgage for massive tea possession.

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300 million! The Pu'er coin fraud case is a virtual currency that claims to be used as a mortgage for massive tea possession.

The reporter learned from the Shenzhen Municipal Public Security Bureau on the 15th that the local police recently detected a fund-raising fraud case involving more than RMB 300 million and arrested six suspects.

On June 15, 2017, the police in Nanshan District, Shenzhen received a report from the public that there was illegal fund raising by Shenzhen Puy Block Chain Group Co., Ltd. After investigation, the company passed the P2P platform of Quqian.com, illegally absorbing public funds, and defrauded the victim of RMB 307 million, and was suspected of fraud in fund-raising. Nanshan District Police immediately set up a task force to carry out investigations.

After investigation, it was discovered that Putian Blockchain Group Co., Ltd. announced through external platforms such as the Internet and social software that its company's Pu'er Coin (later renamed as “Pd”) was a kind of self-proclaimed massive deposit. As a virtual currency for tea as a mortgage, every ordinary silver coin held by the investor has the equivalent of possession of tea as a mortgage. Investors can buy and sell spreads on the virtual trading platform Polycoin.

However, the police investigation revealed that the so-called change in the buying and selling price was caused by the company’s investment operation using investors, and once raised the price of Pu'er Coin from RMB 0.5 to RMB 10. In fact, the company has only a small amount of inventory of tea. When a large number of investors entered the market, the company continuously cashed out through the malicious manipulation of the price of the common silver coins, and the live broadcast resulted in the investors’ hands being worthless and the losses were heavy.

On March 28 this year, the police in Nanshan District carried out a net-collection of alleged fundraising frauds by the Bank of Shanghai Block Group Co., Ltd. and successfully captured six suspects such as Pan Moudong and Xiong Moulong. At present, the police are chasing away other criminal suspects and recovering money for the victims to maximize their losses.