Digital yuan

Chinese Police Warns Against Digital Yuan Scam

One critical disadvantage of cryptocurrencies is that malicious actors are quick to use the assets to their advantage and to carry out a long list of illegal activities. A report from a local media house in China has indicated that these malicious actors are now targeting the central bank digital currency (CBDC) project, Digital Yuan, of the country.

According to the report, the police force in Shandong province have been forced to issue a warning to citizens about how some fraudsters have been duping unsuspecting individuals through a scheme where they pretend to be promoters of the the Digital Yuan project. The police stated that the scammers called themselves “Central Bank’s International Wallet,” a wallet platform for the national digital currency.

These fraudsters then go ahead to lie to their victims that there is a “secret CBDC promotion fund” worth $186 million which they can access while also promising them profits of over $20,000 and a 2% bonus on every deposit. Though the wallet is not live yet, the fake “Digital Yuan” application has, however, managed to dupe at least 500 users now. Not only that, the police also believes the scammers now have access to the personal details of users like bank details and real names, via a smartphone app.

The police has come out to warn citizens to be careful of such malicious players and to report any such cases to the authorities. The apex bank of China has also stated that most times, offers like this are just Ponzi schemes with “multi-level marketing strategies.”

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