Key Points
- •The Lechang Court has sentenced individuals involved in a cryptocurrency fraud scheme that targeted foreign investors.
- •The sentences, ranging from six to eight months, underscore China's firm regulatory stance against cross-border cryptocurrency crimes.
- •The fraudulent activities involved impersonation on social media and directing victims to unregulated investment platforms.
Criminal Convictions and Regulatory Enforcement
The People's Court of Lechang City, located in Shaoguan, Guangdong Province, has delivered prison sentences to individuals involved in a cryptocurrency fraud case. This scheme specifically targeted foreign investors and resulted in a loss of approximately 4,619.9 RMB ($462). The sentences imposed on the perpetrators range from six to eight months.
This conviction serves as a significant emphasis on China's ongoing efforts to combat cross-border cryptocurrency crimes. The legal enforcement in this case sends a clear global message that targeting foreign investors, even under the pretense of exploiting legal loopholes, will not be tolerated.
Details of the Fraud and Judicial Stance
Individuals identified as Zhang Mosong and others orchestrated a cryptocurrency scam by impersonating financial bloggers on social media platforms. They then proceeded to fraudulently guide foreign victims into investing a sum of around 4,619.9 RMB ($462) on a fabricated investment platform. Following their conviction, the Lechang People's Court imposed sentences of six to eight months on the perpetrators and also levied fines.
In response to such activities, authorities have issued public advisories reminding citizens that "overseas is not a lawless zone." This statement reiterates that engaging in illegal cross-border cryptocurrency activities will lead to criminal penalties. Judicial statements have further reinforced this legal position, urging communities to enhance their awareness of the associated risks.
"The claim of 'only defrauding foreigners' is not a legal exemption; overseas is not a lawless zone, and one should not believe the fallacy that 'defrauding foreigners is not illegal.'"
Broader Context of Crypto Fraud in Guangdong
Guangdong courts have been actively prosecuting cross-border cryptocurrency fraud cases. Since the beginning of 2024, over 50 such cases have been brought to trial, highlighting a substantial and ongoing effort to combat virtual currency scams that target foreign nationals.
Market Data and Analyst Insights
As of November 2, 2025, Tether USDt (USDT) maintained its value at $1.00, with a market capitalization of $183.44 billion, representing a market dominance of 4.96%. Over a 24-hour period, trading volume reached $84.16 billion, showing a slight decrease of 0.08%. The price has remained stable over the preceding 90 days.
Analysts at Coincu anticipate a continuation of regulatory tightening, which could lead to more stringent measures concerning cross-border cryptocurrency activities. The data available suggests that heightened alertness among investors is crucial for mitigating the impact of platform-based scams.