According to PANews, recent developments have seen unscrupulous entities exploiting the popularity of 'stablecoins' by issuing or promoting so-called 'virtual currencies,' 'digital assets,' and 'stablecoin investment projects.' These schemes promise high returns, enticing the public to invest funds in trading activities that may be illegal financial operations.
Such activities are characterized by significant risks of illegal fundraising, often relying on the influx of new investors' money to sustain operations or pay returns to earlier investors. If the financial chain breaks or the project organizers abscond, investors face substantial risks of losing their principal.
In response, financial regulatory authorities in various regions have issued warnings to the public, advising caution to avoid falling victim to these fraudulent schemes.
