Authorities Crack Down on Crypto-Related Financial Crimes

Shenzhen's financial crime task force issued an urgent public alert this Wednesday regarding fraudulent investment schemes masquerading as stablecoin opportunities. The government notice revealed these operations frequently involve pyramid schemes, money laundering, and online gambling activities under the guise of digital asset investments.

Exploiting Public's Limited Crypto Knowledge

Officials emphasized that scammers deliberately target investors with limited understanding of blockchain terminology. ——These groups fabricate complex financial products using technical jargon to appear legitimate while operating without proper licensing——. 【Data shows】 over 1,300 similar cases were reported across Guangdong province in the past quarter alone.

Legal Consequences for Participants

Interestingly, Chinese law holds individual investors partially liable when participating in unauthorized fundraising activities. The notice clarified victims might not recover losses while potentially facing penalties themselves. Authorities stressed the importance of verifying financial licenses through official channels before any investment commitment.

Recent Fake JD Coin Scandal

This warning follows June's widespread circulation of counterfeit JD.com stablecoin promotions across Chinese social platforms. E-commerce giant JD confirmed scammers impersonated company representatives offering fraudulent digital currency sign-up bonuses. Remarkably, the authentic JD Group had announced legitimate stablecoin licensing plans in Hong Kong just weeks earlier.

Public Reporting Mechanism Established

Shenzhen established dedicated reporting channels offering potential rewards for verified tips about illegal crypto fundraising. The task force pledged rapid response to complaints with a special focus on schemes exploiting elderly citizens or rural populations. ——We must cultivate rational investment attitudes and resist get-rich-quick psychology—— the notice concluded.

Broader Regulatory Context

This crackdown occurs amid China's stringent prohibition of cryptocurrency trading since 2021. However, the government maintains distinction between banned speculative trading and permitted blockchain technology development. Analysts suggest the warning reflects growing sophistication of financial crimes exploiting decentralized finance concepts.