China has smashed its first illegal pyramid selling network organized by foreigners, confiscating and freezing over 13 million yuan (1.6 million U.S. dollars), said the Ministry of Public Security in Beijing Tuesday.

According to a statement from the ministry, the pyramid scheme involving over 1,800 people were organized by people from the Republic of Korea under the name of selling cosmetics and keep-fit underwear in East China's coast city of Qingdao.