Police investigate nearly 6,000 pyramid schemes

0 Comment(s)Print E-mail Xinhua, October 5, 2017
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BEIJING, Oct. 5 (Xinhua) -- Chinese police had investigated 5,983 pyramid schemes in the first nine months of this year, up 118 percent year on year, the Ministry of Public Security (MPS) said.

The cases involve nearly 30 billion yuan (4.5 billion U.S. dollars).

Internet-based pyramid schemes have been rising, the MPS said. Many of these cases involve virtual currencies.

A special campaign against pyramid selling organizations disguised as recruitment agencies also reported progress since it was launched in August, said the MPS.

Police in Tianjin, Zhejiang, Jiangxi and other regions raided 1,700 pyramid scheme sites, apprehending and dispersing 3,800 scheme members.

A pyramid scheme, illegal in most countries, is a business model based on enrolling increasing numbers of participants instead of real sales or investment. In such schemes, an organization promises new members a share of the money taken from the people they recruit. Enditem

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