Chinese Police Arrest Over 500 Suspects in Illegal Crypto Sports Betting Scandal

Local police reports published today, July 12th, from China’s Guangdong province reveal that 540 criminal suspects from 20 different Chinese gangs have been arrested for involvement in a massive online sports betting ring.

According to the police report, the betting ring was made up of a network consisting of over 70 gambling apps and websites and 250 chat groups across social networking platforms. In total, more than 10 billion yuan (~$1.5 billion) in cryptocurrency bets were said to have been processed.

Bets were reportedly to be taken in the form of Bitcoin (BTC), Ether (ETH), and Litecoin (LTC). Business for those criminal entities involved is said to have exploded following the start of the World Cup, drawing in over 330,000 users.

There appears to be additional concerns among Chinese authorities that the betting ring was also functioning as a pyramid scheme. The gang members involved in the operation were said to be recruiting and developing members in a tiered system with money streaming upwards to the operation’s founding members. Further analysis of the odds being laid by the bookkeepers also suggests that odds ratios were adjusted to prey upon customers not affiliated with the gang in charge of the betting ring.

The Chinese government, which has put strict regulations on gambling in the country, considers this incident a serious danger to public security.

More on this story to come as further information is acquired.

The post Chinese Police Arrest Over 500 Suspects in Illegal Crypto Sports Betting Scandal appeared first on UNHASHED.