Hubei officials caution investors as investigations reveal that projects like 'Uke Chuang', 'Shiyi Hui', and 'Ronghui Capital' use offshore trading platforms and a fission model, posing high risks.
Authorities in Shiyan, Hubei, have issued a warning against crypto projects such as 'Uke Chuang', 'Shiyi Hui', and 'Ronghui Capital' after receiving multiple consumer complaints. Investigations indicate these projects advertise investment returns by using offshore cryptocurrency platforms and a fission model that requires participants to recruit new investors, a structure suspected of resembling pyramid schemes. The warning, issued in line with the 'Regulations on Prohibition of Pyramid Schemes' and a notice on preventing virtual currency transaction risks, aims to protect consumer assets.