Xi'an Branch of the People's Bank of China: We need to guard against the "four major fraud schemes" of virtual currency

Xinhua News Agency, Xi'an, November 25 (Reporter Xue Tian) As the year-end approaches, the international virtual token market is heating up again. The Xi'an Branch of the People's Bank of China reminds investors to guard against the "four major fraud routines" of virtual currencies.

The Xi'an branch stated that recently some criminals have disguised themselves as blockchain investment experts, and claimed to be insiders of the "digital currency", "blockchain" and "financial innovation" projects. Relying on the Internet, they have used chat tools, dating platforms and casual forums to widely promote illegal financial assets such as virtual currency and virtual assets, and incited investors to seize the opportunity and participate in virtual currency transactions.

It is reported that such criminals use the names of "blockchain" and "token economy" to confuse consumers, falsely promise "short investment cycle, high returns and low risks", and manipulate behind the scenes to create the illusion of a lack of market and rising prices to attract investment, and even induce investors to recruit others to join, continuously expand the capital pool, and ultimately own it, causing damage to consumer interests.

In this regard, the Xi'an Branch summarized the "four major scams" of virtual currency: Scam one, claiming technologies such as "blockchain", "decentralization" and "open source code" as the technical structure of its own virtual currency; Scam two, making up stories and designing patterns to attract investors' attention; Scam three, with obvious characteristics of mass fraud and multiple illegal and criminal characteristics; Scam four, placing the trading platform server overseas, committing fraud domestically and counting money overseas, in preparation for running away in advance.

The bank reminds investors to establish correct monetary and investment concepts, enhance risk prevention awareness, recognize the nature of relevant models, do not believe in exaggerated promises, do not blindly follow the hype, always be vigilant against speculative risks, and avoid losses of their own property. If any illegal financial activities are found, they must be reported to the financial regulatory authorities, and those suspected of illegal crimes must be reported to the public security organs.