Shenzhen issues warning on stablecoin scams, illegal crypto fundraising

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Authorities in Shenzhen, China, urged the public to be vigilant after uncovering illegal fundraising schemes masked as stablecoin investments.

Authorities in Shenzhen, China, warned citizens about illegal fundraising schemes disguised as stablecoin and cryptocurrency investments.

Shenzhen’s city government task force for combating illicit financial activity issued an alert on Monday, urging the public to be cautious of unlicensed entities promoting digital asset investments.

Officials said the groups exploit the public’s limited knowledge of stablecoins and crypto-related terms to mislead investors and fuel speculative investments. 

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