Chinese Watchdog Identifies 421 Cryptocurrencies as Outright Scams
Of late, the digital assets space has without a doubt drawn extensive media coverage, with reports, for the most part, focused on two factors: the price rise of cryptocurrencies, and the scams involving cryptocurrencies. Notwithstanding, investors are fleeced to the tune of millions with the bait of high returns, or a fraudulent pyramid scheme camouflaged as a legitimate blockchain-based cryptocurrency.
China Issues Cryptocurrency Scam Warning in Public Interest
In a bid to educate its citizens on common cryptocurrency scams, China’s financial cybercrime cell – the National Internet Financial Risk Analysis Technology Platform (IFCERT) – released a statement on May 18, 2018, detailing the space’s common scams and other misrepresented digital asset platform.
The IFCERT’s also discovered a total of 421 digital currencies during investigations, all showing attributes of a fraudulent business model. However, the watchdog asserts that most of the platforms are hosted on overseas servers, making it difficult to track their exact location.
Overall, the fraud platforms were trifurcated into broad divisions.
https://www.ccn.com/chinese-watchdog-identifies-421-cryptocurrencies-as-outright-scams/