Reports coming out of the Guangdong province of China state that an illegal gambling ring using cryptocurrency for bets has been shut down.
The ring was allegedly transacting billions of dollars worth of cryptocurrency in bets made on the football World Cup. Six suspects have been arrested and $1.5 million in cryptocurrency assets have been frozen or seized.
This is the second gambling ring busted in China in the space of a week. Last week 40 suspects were arrested in Beijing for running an online syndicate worth $47 million.
The gambling ring was being run on the dark web and accepted bets in Bitcoin, Litecoin, and Ethereum. In eight months of operation it received 330,000 newly registered users and recruited thousands of them to earn commission through a pyramid scheme of recruiting other new users.
Police claim that cryptocurrency was used because it is effectively unregulated in the country, although it is technically illegal since the government banned banks from dealing in it. All cryptocurrency exchanges and ICO’s in the country were ceased in September last year, resulting in Bitcoin trading dropping to less than one percent.
In total, police report that they have arrested over 540 people related to illegal World Cup gambling and frozen over $38 million in assets.
In other World Cup-related news, football star Ronaldhino has announced he will be launching his own cryptocurrency initiative, Ronaldhino Soccercoin (RSC). The project will coincidentally be designed to run an online betting platform amongst other services, including the creation of digital virtual reality stadiums to analyze player skills.
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