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The Beijing Internet Finance Industry Association (BIFA) has issued a stark warning against crypto-related Ponzi schemes disguised as high-return Web3 and DeFi opportunities. The notice highlights common red flags and reminds investors of their liability under Chinese law. This comes amid rising retail speculation and regulatory crackdowns on illegal fundraising.
- BIFA identifies five hallmarks of illegal crypto fundraising, including unlicensed operations and recycling deposits.
- Investors in China are legally liable for losses from participating in unlicensed schemes.
- Regulators are cracking down amid rising retail speculation and offshore crypto activity.
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