Warning Issued on Illegal Fundraising via Stablecoins
Authorities in Shenzhen, China, have raised the alarm over unlicensed schemes using stablecoins to lure investors into illegal fundraising, pyramid operations, online gambling, fraud, and money laundering . These entities exploit the general public’s limited understanding of digital assets and blockchain jargon to appear legitimate, causing significant financial risks .
The Shenzhen task force emphasizes that these operations lack any legal authority to solicit funds. Victims often have no recourse and may even face legal consequences for participation . Citizens are urged to adopt a "rational investment mindset," avoid promises of guaranteed returns, and report suspicious activities—informants may be eligible for rewards .
This warning follows a broader crackdown in China against crypto-related scams, reflecting regulators’ intent to maintain financial order and protect public assets $BTC
🔍 Key Takeaways
Watch for investment pitches grounded in “innovation” and “blockchain” buzz—they may hide illicit fundraising.
Only support entities with proper licensing and transparent operations.
Promptly report stablecoin-related fundraising offers through official channels.
Staying informed and cautious is crucial in navigating the evolving—and sometimes deceptive—
crypto landscape.