A massive cryptocurrency scam has been shut down in Ezhou, China, where 34 people have been sentenced to prison for running a fake crypto trading platform called OURBIT. Over the course of a year, the fraudulent site stole $64 million (460 million yuan) from nearly 30,000 investors, luring them in with promises of high returns and fake trading features.
How the Scam Worked
The fraudsters faked everything—from trading pairs and price charts to licenses supposedly from Singapore, the U.S., and the U.K.. The platform wasn’t connected to any real crypto exchanges, and every trade, price movement, and account balance was manipulated behind the scenes to ensure that users always lost money.
Victims were recruited through WeChat groups, where scammers posed as “expert traders” and shared fake profit screenshots to create an illusion of success. They even hired fake investors to cheer them on in group chats.
Once users invested, they were pressured into high-risk trades designed to wipe out their funds. When someone tried to withdraw profits, the platform either froze their account or demanded more money to “unlock” their funds—only to steal that too.
Court Crackdown and Sentencing
After investigating the operation, the Ezhou Court ruled that OURBIT was nothing more than a fraud machine built to steal user funds. Cheng and 33 other defendants were found guilty of fraud and sentenced to 3 to 12 years in prison, along with heavy fines.
The court also issued a public warning, reminding investors that crypto trading in China is not legally protected, meaning victims often can’t recover their lost money.
Lessons from the Scam
🔹 Beware of “too good to be true” investment promises.
🔹 Never trust investment tips from social media groups.
🔹 Verify trading platforms and licenses before investing.
🔹 Be cautious when dealing with unregulated crypto platforms.
This case serves as a harsh reminder of the risks in crypto trading, especially when dealing with unverified platforms. If something seems too good to be true, it probably is.
