China Police Makes Rug Pull-Related Arrests in the Face of a Complete Crypto Ban

<p>China police have arrested no fewer than eight persons in connection with a rug grab worth RMB 50 million ($7.8 million). The notification was issued on January 14 via the local police department's official WeChat account, along with confirmation that the authorities have also frozen another RMB 6 million ($944,000) in assets.</p> <p>Suspects in Rug Pulling Arrested in China</p> <p>Three suspects have been apprehended in three different provinces: Hunan, Guangdong, and Sichuan, following many reports by victims and a series of investigations by the Police from Chizhou city, Anhui province.</p> <p>Additionally, the police seized expensive automobiles and residences worth "tens of millions" of dollars from these individuals, which are thought to have been obtained from their unlawful operations and the profits generated by them.</p> <p>However, evidence acquired during the investigations has revealed how the perpetrators carried out the rug pull. They (the suspects) were transferring monies without the investors' authorisation from their accounts to a "anonymous pool." And, the post claims, the monies were subsequently laundered through this pool.</p> <p>It's worth noting that the entire project had already been scrutinised. However, despite the fact that it passed the security audit, recent results indicate that the founders used alternate code that incorporated a backdoor.</p> <p>Another Argument in Support of China's Cryptocurrency Ban</p> <p>China is one of the countries that has officially prohibited all sorts of cryptocurrency activity, including trading and mining. The country announced the move in September, with the goal of controlling activities that could harm individual investors and the economy. And instances such as the one described in this article serve to further demonstrate why China may be taking such a strong position against cryptocurrency.</p> <p>In June 2021, a single investor lost his entire RMB 590,000 in a typical rug pull when the project founders transferred the funds, shut do