CHONGQING, Nov. 26 (Xinhua) — Police in southwest China said Thursday they had arrested 102 suspects after swooping on a sprawling telecommunications network that swindled social-media users out of their money.
The public security bureau in Chongqing Municipality said police broke up six criminal dens in different provincial-level regions between May and June and confiscated over 20 million yuan (about 3 million U.S. dollars), forcing the network to abandon their headquarters in Southeast Asia and dismiss personnel.
The police crackdown came after a Chongqing resident reported losing over 1 million yuan to a social-media acquaintance who touted a “highly profitable” investment scheme. The victim had been encouraged to snowball the investments until he found it impossible to withdraw the money.
A suspect arrested in the police action confessed that the network hired a team of salespeople to act as successful elites on social media and swindle people into making “investments,” using verbal tricks and promises of fat profits, according to the police.