Chinese police arrested 31 people for allegedly running a Ponzi scheme, in connection to sales of mining equipment for the filestorage crypto project Filecoin. The individuals were all associated with a Shanghai Filecoin mining equipment firm called IPFSUnion, although it’s not clear if IPFSUnion was involved in or aware of the schemes or if their equipment was simply used by the outside scammers.Filecoin mining became popular in China after Filecoin’s 2018 initial coin offering, and Ponzi schemes and scams based around the token also emerged. Mostly, these involved selling poor equipment or soliciting investment in so-called mining operations that promised exaggerated returns.

Total loss estimated at $62,500,000.