Our weekly roundup of news from Asia curates the industry’s most important developments.
Chinese investors duped by point running and crypto laundering schemes
A new type of cryptocurrency scam is rising in China, with locals losing money to a scheme known as “point running,” according to a warning posted by the Public Security Bureau on Sept. 10.
The term “point running” refers to the practice of moving crypto through various accounts. Often new to digital assets, victims are told that by transferring these cryptocurrencies, they are processing transactions and earning rewards or commissions.
Chinese authorities say that cryptocurrency is becoming increasingly popular among locals, making them more susceptible to scams. (Jefe King)
Typically, this scam is marketed as a side hustle, where participants manually move crypto between accounts, with the false promise that these transactions generate profits. In reality, victims may unknowingly act as money mules, laundering funds for illicit operations.
More recent versions of the scam trick victims into depositing their cryptocurrency into platforms that claim to handle the “point running” automatically, making the process seem effortless. Victims are lured with small initial returns, encouraging them to invest more.
In a case highlighted by the Public Security Bureau, a local resident named Wang was introduced to a WeChat group by a friend. The offer was simple: invest in USDT (“U” coins) and watch the money grow. Wang installed an app and initially invested 8,000 yuan (about $1,125), then increased his investment after seeing minor returns. By August, he had invested over 300,000 yuan ($42,112). When Wang attempted to withdraw his funds later that month, he received a screenshot confirming the transaction, but the money never arrived and his “U” balance disappeared from the app.
Wang was paid 2,000 yuan ($280) through “commission” and ultimately lost 280,000 yuan ($39,305).
Authorities warn that these scams are becoming…
..
