Fake accounts brought about netizens to take part in virtual currency transactions by posting of group chat information and profit screenshots.
The Cyberspace Administration of China, the national internet regulator and censor, has close down more than a dozen social media accounts that had been spreading false information on stock and crypto markets.
The corporation stated on Saturday that some of the focused accounts touted illegal stock recommendations and hyped crypto trading.
Social Media Accounts, Websites Lure Netizens With Fake Crypto Hypes
According to a report by Baidu several accounts on Weibo with names consisting of “Huo Ge Chats About Cryptocurrency”, and “Arn – On Coins,” promoted any hyped crypto transactions.
“[They] caused netizens to participate in virtual currency transactions by way of posting group chat information and profit screenshots,” the document study. Further, a few websites – PKEX, WEEX, and HTX – supplied app download services for trading in interantional crypto platforms.
The accounts were found in popular Chinese social media platforms, together with Weibo, Douyin, RedNote and WeChat. The faux accounts and websites involved in crypto promotions had been closed, the watchdog referred to.
The Cyberspace Administration has collaborated with financial regulators to perform the crackdown operation.
“The public should make investments wisely, stay alert to risks, keep away from spreading rumours, and steer clear of illegal financial activities,” the regulator stated.
Surging Crypto Criminal Cases
With China’s ban on crypto buying and selling and mining, many Chinese citizens were searching for offshore exchanges. Some of them have been routing transactions by VPNs or international platforms.
To meet the requirement, fraudsters have been using false claims to lure victims into scams related to fake promotions, and phishing.
The People’s Bank of China Digital Currency Research Institute warned users in April over claims circulating online about the release of a “Digital Yuan Bank.”
Various platforms have spread false information alleging new pilot programs in cities like Shanghai.
According to the Securities Times investigation, scammers have used those claims to solicit private and financial data from the public. They promised cashback returns of up to 5%, developing chat rooms and hosting in-person events to convince individuals to transform digital yuan the usage of unauthorised channels.
Further, blockchain security company SAFEIS reported that money involved in crypto-related crimes in China surged 10-fold to 430.7 billion yuan ($59 billion) in 2023.
