Cross-Border Crypto Fraud Suit Filed By Chinese Crypto Investors in the Rival Territory


A lawsuit has been filed in the jurisdiction of US Courts against alleged crypto fraudsters namely WeChat by crypto investors of Chinese origin. The Court filing alleges that the defendants are residents of the US who have defrauded the investors and looted their funds, which the defendants had taken for investing in crypto.

It has been reported today that victims of crypto fraud have filed a lawsuit. The plaintiffs, who are six in numbers, are all nationals of China but a few are living in countries other than China. Three plaintiffs are currently residing in the US while the rest are residing in Canada and China respectively. The suit has been filed in the US, particularly in the Courts of New York. The sole person named as “defendant” in the suit is called “Sun” who is a resident of the US.

It was alleged in the lawsuit that the person named Sun had prompted a crypto fraud scheme. He professed himself an operator of the stock trading company from where he claimed to have sold trading tips and courses. The plaintiffs have prayed that the Court passes an order against Sun to return their money, which he took under the garb of “investment”. However, for reasons best known to them, the plaintiffs have not disclosed the actual amount of the funds they had entrusted to the defendant.

The plaintiffs have claimed that the accused namely Sun launched a crypto fraud scheme from 2016 till 2020. They also claimed that the defendant promised them high yields in terms of profit but deliberately failed to keep his promise. They further apprised the Court that the defendant actually manipulated statements relating to Bitcoin. He then used the online communication app known as WeChat to share these statements with the plaintiffs. According to the plaintiffs, Sun intentionally used WeChat to show as if he was running a legal crypto business.

It has been further asserted in the lawsuit that the defendant continuously showed the plaintiffs fake and forged documents. He was suggesting to them as if he was earning huge sums of money on daily basis and enticed them to be a part of his fraud scheme. During all this time, he continued to keep in touch with his victims through WeChat.

On 1 August 2020, however, Sun initiated a Bitcoin fundraising campaign wherein he showed profit earning as 558.9% to 763.75%. Sun also claimed that he has managed to earn 15 Bitcoins. Being impressed by these figures, the Chinese investors too got involved and gave him money on trust.

Thereafter, the situation started to take a u-turn, alleged the lawsuit as the investors did not receive promised returns. The plaintiffs then requested Sun to return their investments from time to time, but he refused on one pretext or the other. Most of the time Sun claimed that because of some tax issues and allegations of money laundering, profit sharing is being delayed.

So far there hasn’t been any proof submitted by Sun which suggested that any of the investors had been given any profit sharing. The case is currently pending before the New York and the next hearing is due next month.

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