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China investigates cryptocurrency projects related to pyramid scheme fraud allegations.
The Market Supervision Administration of Thap Yen City ( Hubei Province ) has just issued a risk warning and is investigating three cryptocurrency projects: "Youke Chuang," "Shiyi Hui," and "Ronghui Capital."
According to the authorities, these projects use platforms based abroad, apply multi-level marketing models, and promise high profits, violating China's ban on cryptocurrency trading. Investors are advised to exercise caution, as participation does not guarantee capital safety.
The authorities emphasize that all forms of intermediaries in cryptocurrency transactions are strictly prohibited. In the past, similar warnings temporarily halted illegal activities but did not significantly impact the market.
Currently, the investigation is ongoing and the leadership of the projects has not made any public response.