Chinese Authorities Accuse Filecoin (FIL) Miners in $83 Million Alleged Scam

Chinese authorities have pressed charges against Shenzhen Shikongyun Technology. One of China’s major Filecoin (FIL) mining companies, and its four executives, accusing them of orchestrating an $83 million pyramid scheme. 

The Pingnan county court in Guangxi autonomous region has initiated criminal proceedings. Prosecutors allege that the company enticed investors by exaggerating the profit potential of their technology, luring participants to mine Filecoin through their platforms. New participants were purportedly required to pay for mining machines or rental fees. The company established a website and official WeChat account. Along with platforms like filpool.io and bpool.io, amassing nearly 100,000 members and allegedly generating 606.95 million yuan ($83.3 million) between February 2021 and May 2022. China’s crypto transaction ban contrasts with Hong Kong’s more favorable stance. Launched in 2020, Filecoin offers decentralized file sharing and storage, with a current reflecting a 5.4% decrease in the last 24 hours.

Clever Robot News Desk 17^th August 2023