Chinese bogus crypto exchanges now eye on ordinary stockholders. Unlike air coins and Ponzi schemes, scammers are now aiming at the ordinary group of shareholders. Some copycat crypto exchanges emerge in China, swindling investors out of millions of Chinese yuan.

Those bogus platforms adopt “recommendation group” model, that is, in the form of recommending stocks to attract investors from stock market into the crypto market.

On the one hand, most shareholders have abundant capital, and they do not reject investment; on the other hand, in the recent years, the stock market is plunging into recession. So Chinese stockholders are circling as the concept of crypto market is spreading.

More importantly, most stock investors are not familiar with the crypto space. It’s hard for them to tell whether the exchange is reliable or not, and they don’t even know the mainstream crypto coins.

Under the temptation of scammers, most victims will agree to join a stock learning group in which advisors give lessons. At first, under the guise of teaching stock knowledge, the advisors would recommend several stocks to win victims’ trust. After that, the advisors said that the stock market is plugging into recession and the return is slow, calling on victims to invest in cryptocurrency, and directly recommend bogus exchanges to the victims.

The exchange system of these bogus exchanges is called MetaTrader 4, which often used for futures, foreign currency and precious metals trading.

“MT4 is an exchange system developed by the Russians, whose price is about 200,000 Chinese yuan. Background data can be completely controlled by the owner. The cost is lower if use pirated MT4 with only thousands of Chinese yuan.”

Said an insider, with less than 100,000 Chines yuan of start-up capital, scammers can build a bogus crypto exchange and make profits from it.

In fact, the investments of these investors have not really flowed into the crypto market from beginning to end. Price trends in these bogus exchanges can be set by the manipulator. As long as investors place orders, manipulator operates in the opposite direction.  Even if the investors make profits, the bogus exchanges will freeze investors’ accounts and make them unable to sell normally.

Scammers now racked their brains to swindle investors, from creating exchanges to crypto coins, the scams make a lot of variety. A few days ago, a bogus crypto exchange swindled investors of millions of Chinese yuan by impersonating a customer service of major Chinese cryptocurrency exchanges.