Authorities in Shenzhen, China, have released a public alert that warns citizens about illegal fundraising schemes that are identified as Stablecoin and Cryptocurrency investments.
City Government of the City of Shenzhen for resistance to forbidden financial activity Issued An alert on Monday, the public urges to be careful with unlicensed entities that promote investments in digital assets.
Officials said groups often exploit the limited public knowledge of stablecoins and crypto-related terms to mislead investors and imaginary investments.
They added that such organizations are often facing for illegal operations that conduct funding, online gambling, fraud, pyramid schemes and money laundering.
The Task Force said the groups did not have the authority to raise funds from the public, which warned citizens that losses gained from these schemes were not likely to be paid.
Under Chinese law, individuals who participate in illegal funding can also bring personal responsibility for any financial losses.
Shenzhen’s gov urged the public to have a “rational” investment mindset
The city government urged the public to avoid believing in promises. Read an English translation:
“We invite the public to adopt a rational investment mindset, prevent blindly belief that grandiose promises, establish a proper understanding of money and investment, and stay vigilant to avoid being deceived.”
Officials also told their citizens to report any creatures raising funds under the guise of stablecoin investments or similar schemes. Chinese authorities say people can report these illegal activities to their district authorities or law enforcement.
They said the associated departments will prove the lead and act accordingly. In addition, informants may receive rewards based on associated regulations.
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The warning came in the middle of the fake JD Stablecoin Promo
The warning came a week after a wave of promotions that offered fake jd.com stablecoins appeared on Chinese social media.
On June 30, China’s giant e-commerce said the creatures Lack of publicwhich is said to be associated with the company and offers fake stablecoins in exchange for users who have signed up. Similar stablecoin campaigns have emerged throughout China, according to WeChat accounts.
JD is already showed a strong interest in stablecoins. On June 18, the company announced its plans to apply for a Stablecoin license in Hong Kong.
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