The numbers of crypto fraudsters have increased in recent times, as Bitcoin continues with its bull run. Recent reports have revealed that online fraudsters are now deceiving people by offering to sell China’s proposed cryptocurrency that hasn’t even hit the market year.
China’s CBDC project called the digital yuan has gained momentum, both in terms of awareness in the market and awareness of online crypto criminals.
Hanfa, Croatia’s financial regulator, has made some revelations about the activities of these online fraudsters. The watchdog disclosed a Facebook page known as “Yuan Pay Group”, which claims it is affiliated with the Chinese government and advertise transactions in the Chinese digital yuan.
Digital yuan still under development
The fraudulent scheme asks people to send cash to purchase fake digital yuan tokens and promises them huge returns.
The Chinese-backed digital yuan is not yet out, even though it has been under development for over five years. However, the Chinese government recently completed series of trials on the CBDC. Presently, the government is rolling out the token on major e-commerce platforms in China.
The Chinese financial authorities are still carrying out some test projects on the digital yuan, with no specific date set for the full unveiling of the real digital asset.
The Chinese CBDC has no monetary value attached to it yet, but the online criminals are taking advantage of the recent boom in the cryptocurrency industry to corn their victims.
The scammers are claiming that if the users invest in the coin in its early stage, it will yield a fortune for them in a little time when the coin has become very popular in the market.
But it’s a simple strategy to deceive them and take their funds away.
Regulators warn seriously on cryptocurrency scam
Financial regulators have been seriously warning about the present rate of crypto scams online. The Hanfa has also warned that the fake digital yuan ad makes use of false endorsements from celebrities who they say are supporting the crypto investment scheme.
There were fake testimonies of some celebrities, as well as images of Peter Thiel and Richard Branson to convince victims to exchange their fiat currencies for the fake digital yuan.
Regulators have described the scams as one of the most prolific scams the internet has ever seen. As a result, Hanfa is warning crypto holders and users to results the temptation of paying heed to any new investment scheme that promises unusually high returns.