Taizhou Cyber Police Announce Major Virtual Currency Fraud Case, Using Metaverse as a Gimmick to Swindle 35 Million Yuan

Techub News reports that the Taizhou cyber police in Zhejiang recently disclosed a major fraud case disguised under the guise of the "metaverse" and "virtual currency." The criminal gang used the promotion of facial recognition payment devices as a front, attracted traffic through a points system, and then induced over 130 investors to purchase their self-issued "air coins." The gang continued to siphon funds by restricting withdrawals through lock-up periods, manipulating prices via backend controls, and forcing "coin swaps," accumulating fraudulent proceeds totaling up to 35 million yuan.

The court found that the defendants, with the purpose of illegal possession, utilized high-tech concepts to carry out fraud, involving an especially large amount of money. Ultimately, the principal offender was sentenced to 10 years in prison and fined 200,000 yuan. This case once again reminds investors to be wary of any promises of high returns packaged under "new technologies" and to stay away from illegal fundraising and air coin traps.