The pressure on cryptocurrencies still continues in China, which has imposed bans on Bitcoin (BTC) and cryptocurrencies.
At this point, Chinese journalist Wu Blockchain said that Chinese prosecutors are suing Shikongyun, one of the largest Filecoin (FIL) companies in China.
Wu Blockchain based this news on the news of the country's local news agency Weixin.
“Chinese prosecutors have sued Shikongyun, one of the largest Filecoin companies, for selling nearly $100 million in a ponzi scheme.
Currently, almost all Chinese Filecoin companies and their founding teams are under investigation by the Chinese police.”
China's local prosecutors sued shikongyun, one of the largest Filecoin companies, for selling nearly $100 million in a pyramid scheme. At present, almost all Chinese Filecoin companies and their founding teams are under investigation by the Chinese police. https://t.co/Eh1lizjcz7
— Wu Blockchain (@WuBlockchain) August 15, 2023
In this case, it was alleged that Shikongyun was a ponzi scheme and sold about $100 million in fictitious services.
It was stated that the founders of the company, Lai Mouhang and Lai Moujun, asked the investors to pay the mining machine purchase price or mining machine rental fee under the name of Filecoin mining and included it in the ponzi scheme in this way.
The lawsuit also involved SpaceTime Cloud, which was filed under the Shikongyun company name and operates FIL mining pools.
As it will be remembered, it was stated in May 2022 that Shikongyun was under police investigation.
In a statement, the company confirmed the investigation and stated that they were helping the authorities.
” ]
Following the news, Filecoin has dropped 1.55% in the last 24 hours and is currently trading at $4.03.
*Not investment advice.
