The Growing Threat Of Chinese Crypto Scams

As the crypto industry continues to grow, so do the number of scams and fraudulent activities perpetrated by malicious actors from all walks of life. Recently, a significant portion of those scams has come from Chinese-origin entities that have prompted investors all over the world to take notice and increase their vigilance against such schemes. In this blog post, we will explore the growing threat of Chinese Crypto Scams and discuss methods to protect ourselves from them. We will first look at an overview of such scams, then dive into more detail about Fraudulent Initial Coin Offerings (ICOs), Pump and Dump Schemes, Phishing Scams, and finally look at Countermeasures for Protection Against Chinese Crypto Scams.


The rise of cryptocurrency has been a double-edged sword, providing incredible opportunities for innovators and investors while at the same time exposing users to a myriad of security threats. One particularly alarming development is the growing prevalence of Chinese crypto scams, which have become increasingly commonplace as cryptocurrency becomes more mainstream. In this blog post, we will be taking an in-depth look at the various types of Chinese crypto scams out there and how you can protect yourself from them.

Chinese Crypto Scams Overview

The threat of Chinese crypto scams has been on the rise, especially in recent years. These scams typically involve unsuspecting victims being tricked into investing large amounts of money into fraudulent investments that promise lucrative returns. Scammers may also offer fake tokens or coins, as well as platforms for trading crypto assets that are either nonexistent or non-existent in the real world. Unfortunately, these scams have caused many investors to lose their money and oftentimes, those affected find it difficult to recoup their losses. As such, it is important to be aware of these threats and take precautions when dealing with any Chinese crypto-related activity.

Fraudulent Initial Coin Offerings (Icos)

The growing threat of Chinese crypto scams is particularly visible in the form of fraudulent Initial Coin Offerings (ICOs). These ICOs typically advertise themselves as providing digital tokens in exchange for investment but often turn out to be nothing more than scams. Many ICOs don’t provide investors with a tangible product or service and merely exist to collect funds from gullible investors, quickly disappearing without any sign of being held accountable. Regulations intended to protect investors from these malicious activities are often ignored or manipulated by the criminals running the ICOs. It is all too important for those interested in investing in cryptocurrencies to take extra precautions and do their due diligence before investing.

Pump And Dump Schemes

Pump and dump schemes are a common type of scam perpetrated by malicious actors in the Chinese crypto market. These schemes involve promoters buying up specific coins or tokens, often at low prices, and then ramping up hype and spreading false information about the asset’s worth to increase the demand for it. However, once enough unsuspecting investors have jumped on board, promoters will typically ‘dump’ these coins on the market en masse, causing rapid deflation in their value and leaving many investors with serious losses. As crypto markets become increasingly popular among Chinese investors, pump and dumps remain a major concern that must be addressed by both domestic and international authorities.

Phishing Scams

Phishing scams are an increasingly common threat in the world of cryptocurrency. Criminals use a variety of techniques to deceive unsuspecting victims into providing their personal information or sending funds directly to them. These tactics often involve creating fake websites, emails, and text messages that appear to be from legitimate sources. In some instances, attackers even use social engineering techniques such as impersonation or intimidation to trick victims. It’s important for users of cryptocurrencies to remain vigilant and verify all requests for funds or sensitive data before providing any such details.

Countermeasures For Protection Against Chinese Crypto Scams

As the threat of Chinese crypto scams grows, it is important to take countermeasures to protect yourself. Start by understanding how crypto scams work and what makes them so attractive in China. Do your research and be sure to read all the terms before investing in any crypto-related activity. Also, verify the legitimacy and credentials of any company before engaging in business with them. Finally, stay informed about new trends or technologies that could potentially be a scam, so you can always have a better sense of security when investing online.


In conclusion, the growing threat of Chinese crypto scams is something that should not be taken lightly. Many people have already been victims of these types of scams and there is no indication that their prevalence will decline in the near future. It is important for individuals to remain vigilant when investing in cryptocurrency, especially if they are unfamiliar with the currency or company they may be dealing with. Doing thorough research, asking trusted advisors, and learning as much as possible about a company before investing is essential in order to minimize the chance of falling victim to these schemes.

If you want to get an elaborate understanding of Chinese crypto scams, you can contact us for a free consultation.

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