Ethereum [ETH] based gambling during the World Cup, authorities vigilant
Reports show that this year’s World Cup will be watched by approximately 4 billion people with the gambling community taking full advantage of this worldwide phenomenon. The tournament is slated to fetch over $36 billion in the gambling market with most of the funds being transferred using cryptocurrency.
The World Cup final that is happening on 15th July is expected to contribute a massive chunk of this gambling fund. Some of the recent sources reveal that most of the cryptocurrency gambling platforms are based on Ethereum [ETH] and Binance Coin [BNB].
Using cryptocurrency in the betting industry has been a major thorn in the side of the authorities with countries like China taking strict action against it. This was made evident by the country’s police force shutting down a cryptocurrency gambling ring conducting illegal bets on the ongoing World cup results.
On 13th July, the ‘Chengguan’, another term for China’s police force, released a statement which stated that they had arrested six major suspects in the gambling ring. The police proceeded to freeze assets worth five million yuan found in their accounts and cryptocurrencies worth 10 million yuan. The main tokens that the convicts traded in were Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC] because of their decentralized nature. Chinese local news outlet, Xinhua stated that the sting operation led to some startling developments:
“The network took off more than 20 involved gangs, arrested more than 540 suspects, smashed more than 70 gambling apps and websites, shut down more than 250 online social platform chat groups, and frozen more than 260 million yuan of funds involved in the seizure. A group of servers, computers, mobile phones, bank cards and other items involved.”
The police also reported that the ring was successful till now because they ran their businesses on the infamous ‘dark web’, the part of the internet with no rules and unindexed search engines. During their run, the gambling site had almost 350,000 users with the founders running a sort-of pyramid scheme to bring in more users. Over 8000 ‘special agents’ were given incentives depending on the number of users they bought to the website.
The police commented on the bust saying:
“The gambling syndicate used the loophole that virtual currency is not effectively regulated in our country to make huge profits”
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