21 people detained and 9 arrested in "Hero Chain" fraud case

Recently, the "Hero Chain" fraud case finally came to an end.

On April 22, the Zhuhui Branch of the Hengyang Public Security Bureau of Hunan Province published an article on its official public account titled "Zhuhui police cracked a major online fraud case". The protagonist of the article was the "Hero Chain" that had previously been investigated.

According to the Zhuhui Public Security Bureau, the amount involved in the "Hero Chain" case is more than 300 million yuan. At present, 21 suspects involved in the case have been taken into criminal detention, 15 of whom have been brought to justice, and 9 of them have been approved for arrest by the procuratorate.

On December 29, 2018, the Zhuhui Public Security Bureau officially opened an investigation into the "Hero Chain" case. They went to Beijing, Urumqi, Xinjiang, Xi'an, Shaanxi, Wuhan, Hubei, Zhengzhou, Henan and other places to arrest suspects, and arrested 15 suspects, seized 2 computers and 16 mobile phones involved in the case, and seized and frozen more than 20 million yuan of funds involved in the case.

The suspect Bai Mouhui registered a company overseas and in the mainland, and the actual office of the company was in Beijing. The chairman of the company, Chen Mouli, and the project manager Gao Mou developed a blockchain virtual digital currency project using the gambling industry as a gimmick, issued virtual digital currency Hero Coin HEC, and lured a large number of digital currency holders to "invest".

In just two months, the project raised nearly 40,000 Ethereums (exchangeable for about 300 million yuan at the market price at the time), and distributed most of the raised Ethereums to team staff and investment agents at all levels in the form of dividends.

Preliminary investigations have revealed that there are hundreds of victims of the "Hero Chain" (HEC) blockchain virtual digital currency network fraud case, with funds involved amounting to more than 300 million yuan and illegal profits exceeding 100 million yuan.

At present, Bai Mouhui and 15 others have been criminally detained, of whom 9 have been approved for arrest and 6 are still at large.

In January 2018, "Hero Chain" began to promote itself vigorously, claiming that "Hero Chain" is a gambling service ecosystem with a license issued by the Cambodian government. It is a blockchain online gambling game entertainment platform built based on Cambodia's gambling industry and has won the support of many well-known people in the industry.

However, soon, news about the fraud of "Hero Chain" was exposed, and the consultants and investors promoted by "Hero Chain" said they were "supported". The tokens of "Hero Chain" also broke the issue price and continued to fall after listing on the exchange. The market value of the tokens in the hands of investors evaporated by 90%, and they reported to the public security organs one after another.

Now that “Hero Chain” is over, will other pyramid schemes and Ponzi schemes be far behind?