Local officials in Shenzhen have issued a warning about fake investment opportunities linked to stablecoins and other cryptocurrencies.
These warnings came from the city’s task force that monitors illegal financial activity.
The notice explained that some groups are using digital currency terms to confuse people and convince them to invest. Many of these groups do not have approval to collect money from the public and are often involved in scams such as gambling websites, fake investment plans, or money laundering.
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Authorities said these groups take advantage of people who are not familiar with how stablecoins or crypto work. They use technical language and promises of easy profits to gain trust.
The government noted that losses caused by these illegal fundraising operations usually cannot be recovered. In fact, under Chinese law, people who join such schemes might even be held responsible for the money they lose.
The task force urged everyone to exercise caution when dealing with any group offering crypto investments. People were asked not to believe claims that sound too good to be true and to think carefully before sending any money.
The public was also asked to report any suspicious activity, especially if someone is collecting funds using terms such as “stablecoin” or “blockchain project”.
Recently, Hong Kong’s Customs and Excise Department announced plans to fight money laundering involving cryptocurrencies. How? Read the full story.
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