Georgian Prosecutor's Office charge Chinese citizen with fraud, money laundering in investment scheme

The Prosecutor's Office of Georgia has launched criminal prosecution against a Chinese citizen on charges of fraud and money laundering linked to an alleged investment scam targeting residents in Georgia.

The body added the investigation found that in 2023 the suspect used the online platform mindraygel1.com to operate a fraudulent scheme in Georgia, offering potential clients the opportunity to quickly earn profits by investing in the virtual purchase of medical equipment and pharmaceutical products.

Authorities said the project was in fact a financial pyramid scheme designed to attract a large number of users and encourage them to invest funds under false pretences.

Investigators say the suspect fraudulently obtained ₾394,853 (about $142,000) from 56 Georgian citizens. The illegally obtained funds were then allegedly transferred through multiple bank accounts, converted into cryptocurrency and moved across various digital wallets in an attempt to conceal their origin and legalise the proceeds.

Prosecutors said criminal prosecution was launched in absentia on charges of fraud and legalisation of illegal income, offences punishable by nine to twelve years in prison under Georgian law.

The prosecution plans to request pre-trial detention within the legally established timeframe and said further investigative and legal procedures are underway to locate the suspect, carry out the detention and seek extradition to Georgia.