Cryptocurrency fraud is on the rise in China

Despite the massive crackdown on crypto mining, trading and brokerage services, that doesn’t seem to have stopped those hoping to get rich quick with crypto-themed systems.

And according to a recent report from Century Business Herald, crypto fraud is on the rise in China.

Crypto fraud is increasing in China

According to the 21 Century Business Herald, this month a woman fell victim to a scam run by a fake company that operates a BNY Mellon app for digital assets such as Bitcoin (BTC). Police confirmed the woman had lost about $ 58,600 to scammers posing as a real financier and threatening her with money laundering investigations if she did not pay.

Police added that scammers now “typically” use “fake trading platforms” to “create speculative cryptocurrency transactions”. Officials note that criminals often attempt to mislead concerned investors with threats – and trick them into making hasty decisions about a transfer if they don’t act quickly.

Such crypto fraud and counterfeiting platforms are on the rise in China despite media claims, even as governments and central banks crack down on crypto brokers and bank-linked cryptocurrency transactions by individuals.

Often posing as Chinese agents for well-known foreign financial firms, these fake exchanges often mislead investors into believing that they have cryptocurrencies deposited in the exchanges’ financial vaults – real cryptocurrencies – when in reality they are transferring money to the fraudster’s private wallet. As a result, subsequent attempts to “withdraw” funds from these bogus exchanges were quickly unsuccessful.

The same media explain many others using video streaming platforms and media production techniques.

Apparently, the scammers claim to be seasoned crypto traders who offer free live lectures on crypto investing. However, they later revealed that the “higher” pro tips are for paying customers. And then, as some users of such platforms claim, trading “masters” at the elite level offer further tips – but only for those who have made “institutional investments” up to USD 46,000.

Meanwhile, Beijing Youth Daily reported that a Sichuan court sentenced three people to 10, 8 and 7 years in prison after they were found guilty of stealing large amounts of Bitcoin and Ethereum (ETH) from my friend’s account.

The men pretend to be grocery deliverers and lure the woman into the parking lot to pick up a package. She was then dragged from the parking lot and put in a car, heard the court before being threatened with physical violence and finally agreed to give the men the keys to the warehouse, cryptocurrencies, including 29 BTC ($ 989,000) and 1.25 ETH (USD). 2,884).

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