Authorities in Shenzhen, China, have issued a warning to residents about fraudulent fundraising schemes masquerading as stablecoin and cryptocurrency investments. The city's task force dedicated to tackling financial crimes alerted the public to be wary of unlicensed entities promoting digital asset investments. These groups often take advantage of the public's limited understanding of stablecoins and crypto terminology to mislead investors, leading to speculative investments. Officials noted that such organizations frequently serve as fronts for illegal activities, including fundraising, online gambling, fraud, pyramid schemes, and money laundering. They emphasized that these groups lack the authority to solicit public funds and that losses from these schemes are unlikely to be recovered. Under Chinese law, individuals involved in illegal fundraising may face personal liability for financial losses. The government urged citizens to report any suspicious fundraising activities related to stablecoins to local authorities or law enforcement, with potential rewards for informants. This warning follows recent promotions of fake JD.com stablecoins on social media. Read more AI-generated news on: https://app.chaingpt.org/news