Sri Lankans have been defrauded by a crypto Ponzi scheme in the midst of the country’s biggest economic crisis. The fraudsters were Zhang Kai and Shamal Airport from Sports Chain.
To the news channel Al Jazeera, investor Harshana Pathirana said she invested 2.2 crore rupees which is equivalent to 91 crore rupees and was promised five times profit. However, he suffered a huge loss after only receiving the equivalent of IDR 8.2 million.
The fraud occurred in the midst of a severe economic crisis caused by non-payment of debts owed to the state. With inflation in excess of 50 percent, Sri Lankans are struggling to survive.
Now, some Sri Lankans are accusing a group of individuals of committing the crime fraud worth millions of rupees through a fraudulent crypto investment scheme.
Crypto criminals are scamming Sri Lankans
Be in crypto reported, according to a file submitted to Sri Lankan authorities, that in early 2020, Zhang Kai and Shamal Airport established a sports chain called platform for investing in crypto assets.
The Sports Chain website claims to be an anonymous, highly profitable venture with the goal of becoming a crypto asset used to digitally finance the sports industry.
An investor named Ranjan said he was asked to deposit money into a bank account, download a mobile app and start trading crypto assets.
More than a thousand investors are said to have joined the Sports Chain scheme in one district. However, it is not known how many investors suffered losses.
Most of the affected investors are in their 30s to 40s, including residents of middle to lower economic status from remote areas, as well as professionals such as doctors and security guards.
Sri Lankans who became foreign workers in South Korea, Italy and Japan were among the investors who were victimized.
“Unfortunately, we are among the lower level investors in the pyramid scheme so we did not get the promised earnings,” complained Marasingha, a Sri Lankan living in South Korea.
Last year, the Sri Lankan Government Information Department issued a press release outlining a new movement to launch the government’s efforts to create an integrated system of digital banking, blockchain and crypto mining technology.
However, due to the political turmoil that took place last month, the financial watchdog issued a warning to citizens to be careful Bitcoin because crypto assets are not regulated.
Additionally, the Central Bank of Sri Lanka (CBSL) has stated that it does not consider crypto as legal tender in the country. CBSL refuses to grant licenses to crypto companies. [ed]