LIVE
Ethena Review 2026: How Safe Is the Synthetic Dollar Behind USDe?◆Jito Review 2026: JitoSOL Fees, MEV Rewards and What You Give Up◆Coinbase Wins Federal Approval for National Trust Charter◆CertiK Urges Crypto Exchanges to Set Hard Hot Wallet Dollar Caps◆SlowMist Reports $304,500 Ankr Loss From Five Allegedly Forged Submissions◆Binance to Close Accounts in Four EU Countries Dec. 31◆Top Crypto Prop Trading Firms in 2026◆Rialto Protocol Overview: Reported Features, Referral Terms and Airdrop Risks◆Unchained Summit India Brings Cross-Border Payments and Digital Finance into Focus as A7 International Joins as Sponsor◆Drift Protocol Review 2026: What We Saw on a Paused Solana Perp DEX◆Ethena Review 2026: How Safe Is the Synthetic Dollar Behind USDe?◆Jito Review 2026: JitoSOL Fees, MEV Rewards and What You Give Up◆Coinbase Wins Federal Approval for National Trust Charter◆CertiK Urges Crypto Exchanges to Set Hard Hot Wallet Dollar Caps◆SlowMist Reports $304,500 Ankr Loss From Five Allegedly Forged Submissions◆Binance to Close Accounts in Four EU Countries Dec. 31◆Top Crypto Prop Trading Firms in 2026◆Rialto Protocol Overview: Reported Features, Referral Terms and Airdrop Risks◆Unchained Summit India Brings Cross-Border Payments and Digital Finance into Focus as A7 International Joins as Sponsor◆Drift Protocol Review 2026: What We Saw on a Paused Solana Perp DEX◆
Homepage/News/OTC Traders Arrested for Running Illicit Bitcoin Loan Scheme
NEWS
News

OTC Traders Arrested for Running Illicit Bitcoin Loan Scheme

·1 MIN READ·
MakeThe CC Presspreferred onGoogle

Two over-the-counter (OTC) traders from China have been indicted of operating an illegal bitcoin (BTC) loan scheme which involved collecting bitcoin and promising interest on deposits, according to a report made by Chinese newspaper The Beijing News on May 22.

KEY FINDINGS - EVIDENCE LEVEL: MULTI-SOURCE
1Key sections mapped in this report
1Internal references connected to related coverage
3External source domains cited in the article
1 minEstimated time to read the full report

The report stated that Yi Zhou and Xiang Li managed to manipulate traders into sending them their bitcoin funds under the promise of giving them interest on their deposits. Through this scheme, the traders have succeeded in gathering over 7,000 BTC (valued at approximately $54.7 million at the time of writing) from over 100 investors.

The investors became suspicious when the interest, which was paid in yen, stopped being deposited in their account since April.

It was reported that the two traders managed to gain the trust and funds of investors by using chat groups on the Chinese messaging app WeChat, where many OTC offers for various cryptocurrencies were posted.

The newspaper also revealed that a criminal investigation has been opened by authorities against the two accused and that both suspects are now under arrest. It is yet uncertain if the two Chinese traders were operating an illicit loan scheme or just took bitcoins from investors they defrauded.

The WeChat platform has banned cryptocurrency transactions at the beginning of this month, so the traders probably started their operations before the ban.

Featured Image: Cryptoconsulting

SOURCE TRANSPARENCY
  • External Source - Referenced domain: beijingnews.net
  • External Source - Referenced domain: wechat.com
  • External Source - Referenced domain: coindoo.com
  • Byline - Reported by Anca Florentis
  • Coverage Desk - Primary editorial category: News
  • Media Asset - Featured image served from the WordPress media library