Authorities in Shenzhen, China, have issued a public alert warning citizens about illegal fundraising schemes disguised as stablecoin and cryptocurrency investments. The city government's task force for combating illicit financial activity revealed these operations exploit the public's limited knowledge of stablecoins to mislead investors into engaging in high-risk and speculative investments. Many of these organizations are fronts for illegal fundraising, online gambling, fraud, and money laundering. The officials stressed that these groups lack the authority to raise funds and warned that losses incurred from such schemes are unlikely to be reimbursed. Moreover, individuals participating in illegal fundraising could face personal liability under Chinese law. The Shenzhen government is urging the public to maintain a rational investment mindset and to avoid falling for exaggerated claims, inviting them to report any suspicious fundraising activities, with informants potentially receiving rewards.

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