- Fake SENEE platform promised 8–15% monthly returns on low-entry crypto investments.
- Scammers used Indian identities, lifestyle photos, and chat apps with translated messages.
- Sentences ranged from 5 to nearly 15 years; all members fined for role in the organised scam.
In a case that underlines the cross-border risks associated with digital assets, a local court in China has sentenced nine Chinese nationals for orchestrating a USDT-based fraud that scammed over 66,800 Indian victims out of approximately $6 million (₹517 million).
The verdict, delivered by the People’s Court of Heze Economic Development Zone in Shandong Province, revealed a sophisticated operation that used overseas servers, false identities, and manipulated social media content to deceive users into investing on a fake crypto platform called SENEE.
The case highlights growing concerns around the abuse of Tether (USDT) in international financial scams and the rising frequency of India being targeted in such frauds due to its large, digitally connected population.
Chinese authorities have begun tightening their grip on crypto-enabled scams that operate beyond their borders but use infrastructure within the country.
Scammers posed as Indian investors
The fraud operation began in May 2023 when He Moutian, the identified mastermind, established a front office in Heze, China.
He recruited and led a gang of scammers who worked in clearly defined roles to simulate an investment environment that appeared both trustworthy and lucrative to unsuspecting users.
Using chat apps with translation support, the gang posed as experienced investors and targeted Indians with promises of high monthly returns—anywhere from 8% to 15%—on initial deposits as low as ₹1,000.
The communication was tailored to foster trust, often posing as affluent Indian women or fellow investors with fake backstories and financial success.
One of the fraudsters, Li Mouwang, admitted to impersonating a wealthy Indian woman who used online platforms to promote her supposed success in smart investing.
She and others like her lured men into the SENEE app, a counterfeit trading platform that was convincingly backed by forged documents such as business registrations and licences. The app also spoofed Indian locations and posted lifestyle photos to bolster credibility.
Once victims made significant deposits, the platform would freeze their accounts, rendering them unable to withdraw any funds.
Laundered funds through exchanges
After duping the investors, the scammers used a third-party payment service to purchase USDT, which was then converted into RMB or US dollars. According to the court documents, the gang retained a 15% share of the stolen amount as commission.
This flow of illicit funds highlights the challenges of tracking cross-border crypto transactions, especially in crimes involving stablecoins like Tether that are widely accepted and liquid across major exchanges.
The group relied heavily on the anonymity afforded by decentralised crypto networks and international payment gateways to obscure the movement of funds.
However, a coordinated effort by Chinese law enforcement, possibly in collaboration with overseas agencies, led to the gang’s dismantling.
Prison sentences and public warning
The court found that the group was highly structured, with each member assigned a specific role in the chain—from identity fraud and victim grooming to technical support and fund laundering.
All nine members received sentences ranging from 5 to nearly 15 years in prison and were fined for their roles in the operation.
The presiding judge observed that although the scam targeted Indians, similar cases are common domestically within China.
In an official statement, the court urged the public not to trust online investment schemes that promise unusually high returns, exclusive tips, or cashback offers, all of which are classic red flags.
Authorities noted that this prosecution is part of a broader crackdown on telecom and internet-based fraud.
The court also issued a public appeal for scam operators still at large to surrender voluntarily in exchange for more lenient sentencing under current Chinese criminal law.
