In China, a new form of fraud related to the blockchain industry has been discovered, as reported by renowned reporter Colin Wu on his Twitter. This scheme involves deceiving investors who are convinced to transfer their cryptocurrency assets to dubious projects. After the project owners disappear with the funds raised, the defrauded investors seek help from lawyers specializing in cryptocurrencies but encounter a new circle of fraud from fake specialists.

One of the victims lost about $70,000 in cryptocurrencies, and then another $100,000 was stolen due to the actions of a fraudulent lawyer using the "piggyback fraud" scheme. This scheme involves deceiving investors with promises of high profitability and quick returns on investments in digital assets, ultimately resulting in the loss of all invested funds.

The scammers initially offer to invest in virtual currencies, promising favorable conditions. They often pose as experienced and successful entrepreneurs to convince others of their reliability. However, in reality, they have no real business, and their sole goal is to obtain money from people. This is a form of trust deception and investment fraud, where victims gradually invest more funds in seemingly reliable projects before the scammers disappear.

In some cases, scammers may use funds from new investors to pay returns to previous participants, creating an illusion of profitability and project reliability. However, ultimately, such a scheme is doomed to fail, and the criminals disappear with the money, leaving victims without means of subsistence.