A Chinese cryptocurrency trading platform recently collapsed, prompting speculation that the site was running a scam.
On Oct. 15, the platform, Aishang, saw the cryptocurrency traded on its site named Tether plummet from 0.268U to 0.05U within 3 minutes of opening.
Aishang is one of three Chinese crypto exchanges that crashed around the same time, according to local media.
An investor named Liu Qing told the Chinese-language edition of The Epoch Times that Aishang was a Ponzi scheme.
According to Liu, Aishang claimed that there would be a 4 percent increase in value, which initially attracted Liu to the platform.
"The digital currency itself is relatively risky," Liu said.
After the crash on the morning of Oct. 15, a large number of investors turned up to Aishang's operations center in the southern Chinese city of Shenzhen at about 9:30 a.m. The doors to the office were open, but the place was emptied out and no one was there, Liu said.
Saturday, October 24, 2020
Chinese Cryptocurrency Platform Collapses, Prompting Concern That It Was Ponzi Scheme
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