203 Crypto Scams Reported in China in 2018
China has seen cryptocurrency scams rocket to 203 in 2018, together with over 3,000 platforms using the concept of cryptocurrency to scam innocents, according to China Judgements Online, a website publishing court documents of the whole country.
As per the search result from the website, crypto-related pyramid schemes have been on the rise particularly in these two years, with 406 related lawsuits having been published since 2014, among which, the cases filed in 2018 alone takes up half of the total.
Blockchain is meant to create “trust” for human society. Contrary to this original intention, the blockchain in 2018 not only failed to solve the “trust” issue, but faced a greater crisis of “broken faith”. In addition to scandals like “great loss”, “layoff” and “runaway”, rampant pyramid schemes in the façade of cryptocurrency are like cancers disrupting the order of the blockchain world.
The bull market in the crypto market at the end of 2017 gave birth to some myth of sudden wealth and lured thousands of outsiders. Scammers also grasped this opportunity, but to swindle the innocents. Under the mask of cryptocurrencies, pyramid schemes are like sitting on a rocket.
According to a previous report by 8btc, as of April 2018, 421 fake cryptocurrencies have been detected by a unit serving for the country’s internet watchdog. The number has still been in growth in the second half of 2018 along with the phenomenal growth of cryptocurrencies despite the escalated crackdown.
In early December, 8btc reported that 142 bitcoin-related lawsuits have been filed in 2018 in China, rising by 11 fold in four years. In the last month of the year, the number has increased to 202.
In the growing digital currency industry, a bigger regulatory and legal crackdown aimed at abuses and outright fraud have been in action. Earlier in May, the U.S. has created a mock ICO website HoweyCoins.com in an effort to increase awareness of the warning signs of crypto scams, and later asked ICOs to go through registration; Hong Kong also proposed a “sandbox” for crypto exchanges to better regulate the sector. While for China, after a blanket ban on ICOs and crypto activities, scams in this space became even more rampant.