On one side, CZ is discussing compliance bull markets and long-term trends in Hong Kong, while on the other, a scandal breaks out with GDFC absconding with 35 million—according to the case files disclosed by the Minhang District Prosecutor's Office in Shanghai, those investors misled by 'high-tech blockchain projects' are left with worthless tokens and no avenue for recourse. This is not an isolated case, but rather the tip of the iceberg of the virtual currency black market; from the mainland to Europe and America, a battle to eliminate black markets has already begun, and we retail investors should first learn to 'avoid traps.'
1. Air coin scams: A 'cutting leeks' scheme with no real change, specifically targeting these two types of people
The collapse of GDFC is a typical case of 'pulling the wool over people's eyes': Wu’s gang wrapped 'blockchain innovation' in a flashy white paper, painted a picture of 'high returns', and when investors put in real money, they sold off pre-mined tokens and absconded with the funds. This is strikingly similar to the scam in Yunmeng County, Hubei—He’s gang was even more ruthless, first conducting security audits to gain trust, then leaving backdoors in the platform, and once investors staked their tokens, they directly manipulated the prices, causing 103 people to lose nearly 78 million.
These scammers specifically target two types of people: first, those with only a superficial understanding of blockchain who think 'just touching blockchain means getting rich'; second, those with a strong greed who can't resist seeing 'daily 0.2% returns' or 'annualized 100%'. Just like in that Hong Kong investment scheme, the gimmick of 'Dubai oil + virtual currency' easily deceived 118 people out of 3.2 million Hong Kong dollars—remember, genuine compliant projects (like the BTC and stablecoins proposed by CZ) will never rely on 'high interest promises' to attract people.
2. New Channels for Money Laundering: Virtual currencies become a 'cover', and ordinary people may also fall into traps.
The anonymity of virtual currencies has made them an accomplice in money laundering. In the 21.4 billion illegal fundraising case in Dalian, Liaoning, Wang had his ex-wife buy virtual currency worth 6.78 million, then transferred it using someone else's account, easily 'washing' 6.52 million in illicit funds. Even more terrifying is that scammers will pull ordinary people 'down the water'—luring you with 'part-time order brushing' and 'cash withdrawal agency' offers, leading you to register accounts with your own identity, unknowingly becoming a 'tool' for transferring stolen funds, only to regret it when the police come knocking.
Previously, fans in the community said they 'helped a friend withdraw coins and earned 500 bucks', but it turned out their friend's money was from a scam, and he was also implicated in the investigation—this kind of 'small profit for big traps' should never be done!
3. Global Regulatory Sword: From US sanctions to China's high pressure, the space for black market survival is shrinking.
In the face of rampant black market activities, countries have finally joined forces: In May 2025, the United States directly sanctioned the Philippines' Funnull company for providing technical support for virtual currency scams, resulting in losses of over 200 million dollars for American investors; Europe is strengthening exchange KYC, Japan is conducting special investigations, and China is continuously cracking down on illegal activities, cutting off scams at the source.
This contrasts with the previous opening of a compliance framework by the CFTC and the implementation of licensed platforms in Hong Kong—regulation is not 'one-size-fits-all', but rather 'cleaning out black markets and supporting compliance'; compliant targets like BTC and ETH may actually be safer.
4. Security Crisis Escalation: 3.1 billion lost in the first half of the year! Vulnerabilities are more unpredictable than scams.
In addition to human scams, technical vulnerabilities are even scarier. A Hacken report shows that in the first half of 2025, losses from vulnerabilities and scams in cryptocurrency exceeded 3.1 billion dollars, more than the total for the entire year of 2024! 59% of the losses were due to account hacks, and 8% from vulnerabilities in smart contracts—one project lost 263 million instantly due to a code defect.
Previously, choosing large platforms could help avoid risks, but now even technical vulnerabilities can trap people. So don’t be greedy for 'high returns from niche projects'; as CZ said, prioritize targets that have compliance endorsements and mature ecosystems (BTC, ETH) to at least ensure technical security.
5. Retail Investor Survival Guide: 3 Iron Rules to Avoid All Pits
Run away from 'high interest': Promises of over 10% annualized returns are basically scams; the Hunan Provincial Financial Office has already warned that 'guaranteed high interest = illegal fundraising signal'.
Don’t lend your identity to others: Helping someone register a virtual currency account to earn a little money may turn you into a money laundering tool, and in the end, you end up with no money and facing legal trouble.
Don't touch projects you don't understand: If a coin has no practical application and the team information is vague, don’t buy it no matter how popular it is—genuine good projects (like the RWA and AI+Web3 proposed by CZ) will explain their logic clearly and won't rely on 'mystique' to fool people.
The crypto world is now a 'tale of two cities': on one side is the bull market opportunity with compliant funds entering, and on the other side are the traps of rampant black market activities. The cases of GDFC absconding with 35 million and global losses of 3.1 billion serve as reminders: don’t be blinded by the 'dream of getting rich', maintain rationality, avoid pitfalls, and you can survive in the compliant bull market while seizing real opportunities.
Follow Lao Ma, as he continues to dismantle black market tricks, discuss compliance opportunities, and help you navigate the crypto world to avoid traps while keeping up with the long-term trends mentioned by CZ!
