Hubei Shiyan issues warning against virtual currency pyramid scheme risks

PANews reported on August 10th that according to the China Consumer News, reporters from the Shiyan Municipal Market Supervision Bureau in Hubei Province learned that the bureau has recently received multiple complaints and reports regarding virtual currency projects such as "Uke Chuang," "Shiyi Hui," and "Ronghui Capital." Initial investigations revealed that these projects advertised returns on investments in cryptocurrencies. Their model involved using offshore platforms for online cryptocurrency speculation and recruiting members through a "fission" model. In addition to profiting from following individual investors, members were also required to share their profits and invite new investors to invest, profiting through "recruiting members." This behavior is suspected of using pyramid schemes to conduct illegal financial activities and poses significant risks.

In order to protect the property safety of consumers, in accordance with the "Regulations on Prohibition of Pyramid Schemes" and the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Transaction Speculation", the Shiyan Municipal Market Supervision Bureau hereby issues a risk warning to beware of virtual currency pyramid scheme traps.