The price of Filecoin (FIL) has dropped nearly 4% in the past 24 hours as the largest firm behind it came under police investigation in China. Here are the allegations made about the decentralized storage-focused altcoin project…
Altcoin price dropped 4% amid scam news
Lai Chuhang, boss of Shikongyun-Filecoin’s largest firm, fraud and a ponzi by the Guangxi police He was arrested on suspicion of editing the scheme. As we covered in the cryptokoin.com news, in November, several Chinese Filecoin companies were investigated by the police for conducting ponzi and FIL mining scams. Police arrested about 30 people involved in the fraud and confiscated more than $50 million.
China continues to crack down on Filecoin companies
Chinese companies operating Filecoin mining pools are under police investigation for suspected ponzi schemes. During the initial Filecoin launch, several brokers ran ponzi schemes to increase participation in the project. In 2019, Chinese media reported that a ponzi scheme raised about $300 million. Shikongyun is one of the largest companies operating the largest Filecoin mining pool ‘Space-Time Cloud’. The technical account and authority have been transferred to the police and will be able to continue services after the completion of the investigation.
Some administrators are still collaborating with the police to investigate and gather evidence. Meanwhile, many employees have returned to their jobs after cooperating with the police on the matter. The Filecoin (FIL) price has fallen steadily since September after reports of scams and scams surfaced. The price has lost nearly 90% in these nine months, from $113 to $8. In fact, the crypto market crash in early May also caused the FIL price to drop significantly. At the time of writing, it is trading at $8.18 and its trading volume has dropped 32% in the last 24 hours.
Lockheed Martin reaches agreement with Filecoin foundation
As the FIL price continues to fall, aerospace firm Lockheed Martin and the Filecoin Foundation are working to accelerate data downloads and enable network participants to access information. announced plans to run InterPlanetary File System (IPFS) nodes to allow The FIL price continues to fluctuate, down about 2% after the news.
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