The Beijing Internet Finance Association (BIFA) issued a warning concerning Web3 and DeFi schemes, expressing concerns about fraudulent practices.
BIFA's Warning on Fraud
On July 9, 2025, BIFA, through its verified WeChat account, released a warning regarding high-return offers in Web3 and DeFi. The association expresses concern due to repetitive patterns of fraudulent schemes in the cryptocurrency market.
Unfair Schemes and Their Consequences
BIFA warned about promotions of 'stablecoin wealth plans' promising fixed returns. These activities, according to BIFA, include **unlicensed operations** and **false guarantees**. The organization cites the unfavorable situation with the PlusToken fraud as an example.
Signs of Fraud in Investment Schemes
BIFA outlines **five hallmarks** of illegal fundraising activities that help investors recognize suspect schemes. These include using **technical jargon** to exploit **information gaps** and cross-linking to fraud.
BIFA's warning emphasizes the importance of increased vigilance among investors in an unstable crypto environment. Should the current situation persist, heightened caution in crypto investments is expected.
