The Chinese authorities have arrested PEB’s six-man team. The company had issued a coin that was supposed to be backed by a certain amount of the valuable Pu-Erh tea. During a search of the rooms, however, not nearly enough tea was found to cover the tokens issued.
Pu-Erh tea from China is one of the best teas in the world. According to Chinese medicine, tea harmonizes the yin and yang of people. Its effect is described as purifying, purifying and detoxifying the body. In addition, it is said not only to have a calming effect, but also to help with weight loss. The ripening and fermentation process of the delicious leaves can take months or even years – this is one of the things that makes it quite valuable. If you use the search engine you trust, you will quickly come across offers where 100 grams of Pu-Erh tea cost 250 euros – which is a good 0.5 ether at the current price.
These characteristics of the valuable brew were now exploited by a gang of fraudsters from China. According to the local media Guangdong Daily, Chinese police have arrested six individuals who have cheated a total of 3,000 investors out of 47 million US dollars with a Tee-Coin.
No backing for the coins
The Pu-Erh-Coin project has existed since 2017 and the possession of a token was intended to ensure that it could be exchanged for a certain amount of the precious tea. According to PEB, the company had stored a large amount of it – the deposits should be worth billions of dollars.
After the search of PEB’s premises, however, there quickly came sobering. Only a “very small quantity” of tea could be found in the company’s stock. And this despite the fact that the company had promised high returns with low deposits. The company had manipulated the price with its own supplies of tokens. Since they cannot guarantee the collateral for the coins, they now face at least a monetary penalty.
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