Authorities in Shenzhen, China, have issued a public warning about fraudulent fundraising schemes disguised as stablecoin and cryptocurrency investments.
Government Appeal
The task force for combating illicit financial activities of Shenzhen's city government issued a warning on Monday, urging the public to be cautious of unlicensed entities promoting digital asset investments.
Advice for Citizens
Officials urged the public to avoid believing grand promises. An English translation reads: "We urge the public to adopt a rational investment mindset, refrain from blindly believing grandiose promises, establish a correct understanding of money and investment, and stay vigilant to avoid being deceived." Authorities also stated that citizens can report entities raising funds under the guise of stablecoin investments to district authorities or law enforcement.
Recent Fraud Schemes
The warning comes a week after a wave of promotions offering fake JD.com stablecoins emerged on Chinese social media. On June 30, the Chinese e-commerce giant stated that some entities misled the public by claiming affiliation with the company and offering fake stablecoins in exchange for user registration. Similar fraudulent schemes have been reported across the country.
In light of the increasing number of fraudulent schemes, it is essential for the public to remain informed and cautious when making investment decisions.
