- Criminals posed as police to scam Hangzhou students, laundering funds through cryptocurrency.
- Authorities warn parents about fake law enforcement scams targeting children.
- Follows a growing trend of crypto use in laundering schemes.
Primary school students in Hangzhou were targeted by scammers posing as police in the game ‘Egg Party,’ with fraudsters converting stolen funds into cryptocurrency.
The scam highlights cryptocurrency’s use in money laundering, raising concerns about digital safety and the necessity for enhanced anti-fraud education among children.
Hangzhou Scam Highlights Crypto Laundering Tricks
A criminal gang in Hangzhou orchestrated a scam targeting primary school students through an online game, “Egg Party.” Pretending to be police officers, they claimed the children’s gaming accounts were involved in illegal activity, persuading them to transfer large sums of money. The Hangzhou Municipal Government and Fuyang District People’s Procuratorate have officially documented the scheme. The funds, once transferred, were quickly converted into cryptocurrency and laundered through on-chain operations, complicating recovery efforts.
Authorities warn parents about the increasing prevalence of such scams, highlighting the need for education and vigilance to protect children from similar fraudulent activities.
Cryptocurrency Scams: Historic Ailments and Regulatory Challenges
Did you know? Scams involving cryptocurrency laundering aren’t new. According to reports, criminals favor BTC and ETH due to their liquidity, allowing them to swiftly anonymize and move large amounts without detection.
Bitcoin (BTC) remains a dominant player in the cryptocurrency market with a current price of $110,502.79 and a market cap of $2.20 trillion. Its 24-hour trading volume fell by 57.67% to $26.44 billion, yet it retains a market dominance of 59.29%. BTC price has mildly changed with a 0.96% increase in the last 24 hours, but has decreased by 0.86% over the past week. Detailed information is provided by CoinMarketCap as of November 1, 2025.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 21:01 UTC on November 1, 2025. Source: CoinMarketCapExperts from the Coincu research team note that crypto-fraud incidents underscore regulatory challenges faced by authorities. Despite technological advancements, the effectiveness of regulations against crypto-laundering schemes is still evolving, suggesting a need for refined strategies and cross-border cooperation to combat such deceptive practices effectively.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/scam-alert/hangzhou-students-scammed-by-crypto-gang/
