News of a new operation came from China, known for its bans on Bitcoin and cryptocurrencies.
People who deceived investors with the promise of investing in Filecoin (FIL) in China were punished for illegally embezzling the money they collected.
Authorities in China's Jiangsu Province have busted an illegal fundraising ring involving more than 40 million yuan (about $5.5 million) in cryptocurrency, local Chinese news outlet Yangtse Evening Post reported.
The suspects raised 40 million yuan (about $5.5 million) worth of cryptocurrencies by deceiving investors with the promise of doubling their returns on their Filecoin (FIL) investments.
The gang, which attracted more than 10,000 members from many provinces including Jiangsu, Guizhou and Hunan in less than a year, was caught as a result of the operation.
The eight people caught were sentenced to three years in prison with three to five years of probation for embezzlement.
The defendants were also fined between 210,000 and 250,000 yuan.
China, which imposes strict sanctions against BTC and cryptocurrencies, has already banned all cryptocurrency transactions, and miners had to leave the country years ago.
*This is not investment advice.