In China, crypto and digital yuan fraudsters are causing havoc

As bitcoin (BTC) prices rise and the rollout of the Chinese central bank digital currency (CBDC) approaches, Chinese media outlets are reporting a sharp increase in bogus crypto, blockchain, and digital yuan-related schemes in the country.

According to reports from JRJ and the National Business Daily, unsuspecting investors are putting up as much as USD 60,000 in fraudulent projects at a time, only to discover that their money has been stolen by con artists.

The media outlets claim to have discovered evidence. That unscrupulous individuals are targeting people all over the country with legitimate-looking offers. That are far too good to be true upon closer inspection.

On the social media platforms Weibo and WeChat, has seen evidence of groups posing as cryptocurrency exchanges.

One example is the Blockchain Dragon Knight group (literal translation), which claims to provide professional crypto and fiat currency-related services and claims that investors can earn up to 600 percent on their initial investments – according to multiple Chinese outlets, this is a completely bogus outfit.

The owner of a phony tether (USDT)-related app is another offender. Last week, Daxinggan reported on the case of a woman named Lee. Who duped into downloading the app and transferring “over USD 60,000”. To buy what she thought were perpetual tether contracts, only to discover she couldn’t get her money back.

Scammers affiliate with companies working with digital yuan

Other scammers affiliated with companies that work with early-adopter digital yuan “funds,”. As well as legitimate exchanges like Binance, according to reports.

The trading platform, which founded in China, now only conducts blockchain-related business in the country.

Wuhan anti-fraud officers also said they had received complaints from WeChat users in stock market trading chat rooms who claimed that fellow members approached them about suspicious “digital currency” investment opportunities.

Despite a crypto crackdown that went into effect in September 2017, interest in BTC. And major altcoins remains sky-high in the Middle Kingdom, according to recent reports. Many experts in Asia explain that many Chinese individuals are continuing to transact crypto. Using stablecoins like tether as a gateway token for BTC trading.

China, once the epicenter of the crypto world, has banned exchanges. However, blockchain technology is rewarded, and digital payments are extremely popular, as is over-the-counter (OTC) crypto trading.