Chinese social media companies are regularly removing crypto promo accounts. This forms part of the Cyberspace Administration of China’s major efforts to restrict games.

Police closed down over a dozen accounts due to sharing false information on crypto markets. They also told Chinese users how to illegally trade in the app.

Key-Takeaways:

• China has taken down crypto promotion accounts on Weibo and WeChat for advertising illegal trading and leading to scam sites such as PKEX and WEEX.
• Crackdowns on crypto fraud are increasing after the value of crimes reached 430.7 billion yuan last year. Regulators are working to prevent new technological tricks fraudsters might use to trick people.

Promo Accounts for Crypto and the Tricks They Use

CRI has shut down a large number of crypto promo accounts on popular Chinese sites. Such apps were Weibo, Douyin, RedNote, and WeChat.

The accounts tried to trick users into becoming subscribers. They uploaded false photos of profits and details from group messages to encourage users to trade virtual currencies.

The YouTube channels “Huo Ge Discusses Cryptocurrency” and “Arn – On Coins” were shut down. They played an important role in helping illegal crypto trading grow.

PKEX, WEEX and HTX are just some of the fraudulent websites that these crypto promo accounts helped advertise. They offered up app downloads so I could start buying and selling overseas.

They started working together to create a deceitful system. Promotions on social media sites were used to get around China’s ban on crypto.

They found ways to use technology to get around the rules. Because of this, the world of trading cryptocurrencies moved into the shadows.

How Officials Respond to Activity from Illegal Promo Sites

Officials from the Cyberspace Administration of China and financial regulators joined forces. They both initiated an extensive termination of crypto promotion accounts.

This decision significantly strengthens how regulations are put into place. It proves how serious China is about forbidding crypto trading activity.

Authorities predict that such accounts put people’s financial safety at risk. They use the internet to pass on wrong information and aid in money laundering.

The regulator advised people to pay special attention. It was recommended for people to use their money wisely, ignore spread rumours and not participate in criminal financial activities.

Cryptocurrency-Related Fraud and Scams on the Rise

The suspension of crypto promo accounts comes after there were many reports of crypto crimes in China. Authorities are dealing with an increase in illegal activities in the industry.

The security firm SAFEIS reported that the amount of money stolen from cryptocurrency crime has risen ten times. The industry income climbed to 430.7 billion yuan ($59 billion) in the year 2023.

Fraudsters found an opportunity during the increase in interest for crypto exchanges overseas. They set up professional scam systems to target Chinese people.

Some crypto promo accounts promoted fake services using the name of “Digital Yuan Bank.” In places such as Shanghai, unlawful digital yuan conversions could net those who used them cashback of up to 5%.

They meant to collect your personal information as well as your finances. They were tricked by the offer of high gains and bogus trial programs.

Those managing these crypto promo accounts in crime involved themselves in online messaging, local get-togethers, and high-quality ad campaigns to appear trustworthy to their targets. The authorities focused on those Chinese people who wanted to invest in cryptocurrency but were not allowed because of the ban in their country.

The presence of crypto promo accounts severely affects China’s rules on cryptocurrency. They help people trade what’s restricted locally by using platforms and VPNs from other countries.

They allow users to get around any restrictions set by a network. It reduces China’s ability to supervise crypto activity.

The latest measures prove that China is committed to its policy. They are taking steps to correct enforcement methods so as to stop new ways people evade.

Conclusion

Cybercriminals running “crypto promo” accounts will change their methods to avoid being found. This means that regulation and enforcement must be updated often. This latest move gives us an idea of what will happen in similar cases. The purpose is to prevent illegal financial promotion in China’s tightly controlled online world.