A fraud case in Beijing has drawn attention after stolen funds were lost in leveraged cryptocurrency trading. The case centers on a 60-year-old woman who used a false identity to obtain money through an online relationship before losing the proceeds in leveraged cryptocurrency trading.
According to sources, the Haidian District Procuratorate in Beijing announced that a 60-year-old woman surnamed Meng was sentenced to four years in prison for fraud after swindling a young man out of more than 200,000 yuan.
Prosecutors said Meng created the fictional identity of her adopted daughter, “Xiao Hong,” and posed online as a woman in her twenties. She built a romantic relationship with the victim and repeatedly requested money, citing reasons such as family illnesses and expenses related to studying abroad.
The scheme began to unravel when the victim noticed that his supposed girlfriend’s behavior appeared inconsistent with her claimed age. Authorities said he also discovered that photographs she claimed were taken overseas had actually been taken inside a karaoke venue in China.
After reporting the matter to the police, Meng was arrested and later admitted to having obtained more than 200,000 yuan through deception.
Leveraged Crypto Trades Erased the Funds
During the investigation, Meng told authorities that she had invested all of the money in leveraged cryptocurrency trading.
According to prosecutors, the funds were placed into highly leveraged positions that were later liquidated after a market downturn led to a margin call. As a result, the entire amount was lost before authorities recovered the proceeds.
The court sentenced Meng to four years in prison, imposed a fine, and ordered her to compensate the victim for the losses.
Court Sentences Man for Theft of 107 Bitcoin
The Beijing case follows another ruling involving digital assets. A Chinese court recently sentenced a man to 10 years in prison for stealing 107 Bitcoin, valued at approximately $6 million.
According to case details, the defendant assisted an acquaintance in setting up a cryptocurrency wallet and secretly retained the wallet’s seed phrase. He later used the information to transfer all of the Bitcoin from the wallet.
U.S. Court Imposes Prison Term in $36.9 Million Crypto Fraud Scheme
In a separate case, U.S. authorities announced that Chinese national Jingliang Su was sentenced to 46 months in prison for his role in laundering more than $36.9 million connected to a digital asset investment fraud operation.
Court documents stated that the scheme targeted 174 victims in the United States. Investigators said victims were approached through social media platforms, text messages, phone calls, and online dating services before being directed to fraudulent investment websites designed to resemble legitimate cryptocurrency trading platforms.
Related: $2.5M Crypto Stash Linked to Human Trafficking Seized in Thailand-China Bust