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Chinese police arrest eight over 'rug pull' crypto scam

Authorities froze nearly $1 million of virtual assets as Beijing clamps down

China's top regulator banned crypto trading and mining in September last year in a bid to "root out illegal" cryptocurrency activity. (Source photos by Reuters) 

HONG KONG -- Chinese police have arrested eight people and froze nearly 6 million yuan ($946,000) worth of virtual assets involved in a crypto scam -- the latest move in Beijing's crackdown on cryptocurrencies.

The public security bureau of Chizhou city in the eastern province of Anhui said on WeChat that the fraud involved digital assets worth 50 million yuan. Hundreds of investors lost money in the scheme that allowed the alleged criminals to transfer the liquidity to an "anonymous pool" and launder it without the consent of investors.

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