China Probes Suspected Crypto Pyramid Schemes in Shiyan
- Shiyan authorities investigate crypto projects for pyramid scheme activities.
- Legal risks emphasized, no market disruption so far.
- Consumer warnings highlight potential financial dangers.
Authorities in Shiyan, China, are probing projects Youke Chuang, Shiyi Hui, and Ronghui Capital for alleged crypto pyramid schemes, warning consumers of the associated legal risks as of August 2025.
The investigation highlights China’s stringent stance on crypto bans, with potential ripple effects on global crypto exchanges using referral models, though no direct market impact is evident.
Chinese authorities are investigating three crypto projects in Shiyan, Hubei Province, for potential pyramid scheme operations.
This investigation underscores China’s ongoing regulatory scrutiny, with authorities cautioning consumers about the associated legal and financial risks.
Shiyan Targets Three Crypto Projects for Pyramid Schemes
The Shiyan Municipal Market Supervision Bureau in Hubei Province is scrutinizing three crypto projects—Youke Chuang, Shiyi Hui, and Ronghui Capital—for suspected pyramid scheme activities. These projects allegedly use overseas platforms and multi-level referral systems. As the Shiyan Municipal Market Supervision Bureau stated, “Participation in pyramid schemes, particularly those using virtual currencies, carries significant legal risks and potential financial loss.”
No official statements have been published by the projects’ founders or high-profile crypto figures, highlighting a lack of transparency. Authorities are cautiously moving forward in issuing warnings to the public.
Current Investigation Leaves Major Cryptos Unaffected
The investigation has no immediate impact on major cryptocurrencies such as BTC or ETH, largely due to China’s strict crypto trading regulations. Still, the consumer warnings issued signal serious financial threats.
Industry leaders and influencers have not publicly addressed these developments, leaving the regulatory communications as the primary source of public information.
China’s Crypto Crackdown Includes Pyramid Scheme Cases
China’s crypto bans since 2021 have frequently cited similar pyramid schemes, with past cases resulting in criminal convictions. The constant vigilance aims to prevent significant market disruptions.
While the event lacks direct market impact, the situation serves as a reminder of ongoing enforcement efforts. Possible future outcomes might include asset recoveries or further legal actions against operators.
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