Shiyan, Hubei issues a warning about the risks of virtual currency pyramid schemes

ChainCatcher news, according to the "China Consumer News," the Market Supervision Administration of Shiyan City, Hubei Province, recently issued a risk warning, launching an investigation into virtual currency projects such as "Youke Chuang," "Shiyi Hui," and "Ronghui Capital." It was found that these projects operate by trading cryptocurrencies through overseas platforms, using a "referral" model to develop members, promising high returns on investments in digital currencies, and are suspected of conducting illegal financial activities using pyramid scheme tactics.

Regulatory authorities remind consumers to be wary of "capital protection and high returns" scams, emphasizing that China prohibits virtual currency exchange and trading intermediary services, and that participation in such projects cannot guarantee the safety of funds. The case is currently under further investigation.