Twenty-two individuals were arrested by Chinese law enforcement, specifically the Bincheng Police Department, for their involvement in a fraudulent graphics card operation. 

The evidence and details of this operation were publicly shared on social media platforms, with seven main suspects being detailed in the reports. The operation involved the acquisition of older, used graphics cards that were then cleaned, re-packaged, and resold as brand new. The operation's structure indicated a high degree of organization with individual roles assigned to different stages of the process. One group was responsible for procuring the used graphics cards, another would clean and test the components, a third team would handle repackaging and rebranding, and finally, a sales team was responsible for distribution.

This operation yielded goods valued at more than 15 million Chinese Yuan, or approximately $2 million USD, according to estimates. Although refurbishing and reselling used graphics cards can be a legal business operation, the group's fraudulent practices led to their apprehension and subsequent legal penalties.

In light of the growing popularity of cryptocurrencies, purchasing second-hand graphics cards has become a risky endeavor. Numerous powerful graphics cards, some of which have been used for Ethereum mining less than a year ago, are now on the market. The past heavy use and potential improper handling of these cards, such as jet washing or selling them by weight, can make them more prone to malfunction than new stock.

The purchase of these refurbished items also comes without the manufacturer's warranty, despite the false promises of renewed packaging. This underscores the need for buyer vigilance in the used goods market, specifically verifying the authenticity and condition of such products.

Chinese Authorities Detain Suspects Linked to Counterfeit GPU Sales