Friday, December 3

Filecoin gets caught up in a million dollar Ponzi scheme in China

Chinese authorities seized 400 million yuan ($ 63,000,000) related to a Ponzi scheme, allegedly carried out by the IPFS Union company with the Filecoin (FIL) cryptocurrency.

The police operation took place in several cities. Specifically in Xuzhou, they were 31 people arrested. The detainees were charged with establishing a Ponzi scheme with cryptocurrency from FIL mining on IPFS Union machines, according to reported a local medium.

IPFS Union is one of the main Filecoin mining companies, a decentralized network for massive data storage that has its own cryptocurrency.

According to information from China, part of the detainees are employees of the IPSF Union and had in their possession several cryptocurrencies such as ether (ETH), Tether (USDT) and FIL.

However, IPSF Union denied that the people arrested belonged to the company, according to a information from journalist Colin Wu.

Likewise, the company indicated that will cooperate with the authorities to clarify the whole situation. They also assured that the detained persons acquired the tools to mine FIL with funds obtained illegally.

FIL dropped in price due to the event

The police action in China, which involved Filecoin, sparked a decrease in the price of your cryptocurrency FIL, which fell from USD 63 to USD 60, according to data of CoinGecko.

The price of FIL dropped the day the police operation information was released, but with the days it increased in price again.

Although the price drop was only sustained for a short period of time, hours after the FIL inconvenience. rallied and reached the price of USD 64, at the time of writing this article.

Last August, CriptoNoticias reported that FIL reached a peak of USD 70.18, even though it is still below the all-time highs of USD 189 achieved by the cryptocurrency last March.

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