The World Cup attracts many viewers who want to watch matches between their favorites teams. Apparently, it also attracts those that want to earn money from gambling.
For the first time in the country, an illegal World Cup gambling ring has been busted in the southern Guangdong province. 6 major suspects were in custody, alongside $1.5 billion worth of cryptocurrencies in 611 cryptocurrency wallets and ¥5 million in their bank account.
The sweep involved 21 security authorities in simultaneous raids in Shenzhen and Guangzhou, in coordination with local law enforcement in the cities of Chengdu and Guiyang, and central Changsha.
The reports have shown that the group had amassed an over 8,000 ‘agents’ who actively recruited new users from across the world. These people earned commissions for recruiting new members through a pyramid scheme, the police said.
In total, there were about 330,000 users from around the world that took part in the crypto-betting economy that happened in the dark web during the eight month of the gambling platform's operation..
The gambling group “used the loophole that virtual currency is not effectively regulated in our country” to make profits, said the police statement.
A spokesperson from the police department in Guangdong province said that the authorities will continue working to "maintain a highly concentrated attention" on cracking down online soccer gambling. They will also advise soccer fans to watch the games "rationally and consciously."
This case follows previous similar, but only held about $48 million in ordinary money.
The sweep was part of the police's Project 9 from the special police action series Clean and Secure Net 2018 (净网安网). Project 9 targets online gambling cases during the World Cup.
In September 2017, the Chinese government shut down all local cryptocurrency exchanges and banned initial coining offerings, a form of crowdsourced fundraising involving cryptocurrencies, with fears that they could create financial instability.
