Rise In Illegal Activities Exploiting Blockchain Technology

According to Odaily, the popularity of blockchain technology in recent years has led to a resurgence of illegal activities. Some unscrupulous individuals are exploiting the hype around blockchain and financial innovation to issue so-called 'virtual currencies', 'virtual assets', and 'digital assets' to raise funds, infringing on the legitimate rights and interests of the public. On June 3, the Shanxi Province Office for the Disposal of Illegal Fundraising issued a warning that such activities are not genuinely based on blockchain technology. Instead, they are illegal fundraising, pyramid schemes, and fraud under the guise of blockchain. Consumers are urged to increase their risk awareness, not participate in speculative activities, and guard against damage to their personal property and rights. The office further explained that these activities, touted as 'financial innovation', are essentially Ponzi schemes that are unsustainable in the long run. The public is advised to take a rational view of blockchain and not blindly believe in extravagant promises. They should enhance their risk prevention awareness to avoid being deceived.