Shenzhen Warns Residents of Digital Currency Fundraising Scams

Shenzhen's financial regulators are warning residents about fraudulent fundraising schemes. These schemes are becoming more prevalent, particularly with the increasing interest in digital currencies. Authorities are concerned about illegal entities exploiting the public's lack of knowledge regarding new financial products.

These fraudulent operations often disguise themselves using terms like "financial innovation" and "digital assets." They attract investors by issuing "virtual currency" and "virtual assets" to illegally collect funds. The authorities have emphasized that many of these institutions lack the necessary licenses and qualifications required for public fundraising.

Common tactics employed by these fraudsters include creating false investment projects, overstating potential profits, and using misleading advertising. They often lure investors with promises of high returns, ultimately leading to financial fraud.

China's regulations strictly prohibit all forms of illegal fundraising. Individuals involved in such activities are responsible for any financial losses incurred. These illegal activities encompass a range of offenses, including illegal fundraising, gambling, fraud, pyramid schemes, and money laundering, all of which endanger public financial security.

In response, Shenzhen's financial authorities are urging residents to adopt a cautious approach to investing. They advise against trusting unrealistic profit promises and to resist high-risk investment opportunities. The goal is to improve the public's ability to identify new financial scams and contribute to a stable financial environment within the city.