Looking at hundreds of contracts in a year, people are scammed every day! How does "Lawyer Mao Dong", who has seen the dark side of the cryptocurrency world, invest?

Cat Dong Lawyer
Cryptocurrency industry experience: 5 years
- Director of Taiwan Virtual Asset Anti-Money Laundering Association
- Expert representative attending the public hearing on the necessity of a special law for virtual assets
Lawyer Mao Dong is good at resolving litigation cases such as virtual currency fraud, virtual currency money laundering, and illegal money-making under banking law. Since 2019, he has handled many lawsuits involving the collapse of virtual currency exchanges. He has also been invited to serve as a lecturer for courses such as virtual currency, AI, e-commerce and other emerging technology laws.
How did you get into the circle in the first place?
Whenever we talk about the cryptocurrency world, social media platforms are flooded with all kinds of amazing trading operations, as if everyone can get rich overnight. Those traders who operate like gods, or KOLs who can always accurately predict the trend of projects and shout "get on board", seem to be the only face of the cryptocurrency circle, making many outsiders feel intimidated and mistakenly believe that this is a distant and unattainable world.
However, are these “god-level” figures really the full picture of the cryptocurrency world?
In fact, beneath these glamorous appearances, the cryptocurrency circle is mostly populated by ordinary office workers like "Lawyer Mao Dong". Like you and me, they work diligently at their jobs, but in addition to working hard, they choose to step into the emerging field of cryptocurrency, hoping to create additional passive income through investment and financial management.
They may not have amazing trading strategies or extraordinary market sense, but with rational analysis, prudent investment and risk control, they can also find a place in the cryptocurrency circle.
When asked how she got into the cryptocurrency industry, lawyer Mao Dong said with a smile that it all originated from her original profession as a lawyer. “Initial Coin Offering (ICO) was very popular back then, and many clients came to consult about related legal issues. In order to provide professional advice, I began to study cryptocurrency in depth. Unfortunately, I didn’t invest at the time, and it wasn’t until a year or two later that I really started.”
Unlike many people who started with investment, lawyer Mao Dong came into contact with the cryptocurrency circle due to work needs, which allowed her to have a more rational observation of this field. As a professional lawyer, she examines the operating logic, potential risks and regulatory issues behind cryptocurrencies with the rigor of a legal professional.
What is the most impressive experience in the cryptocurrency world?
As a cryptocurrency investor, lawyer Mao Dong admitted that the collapse of FTX exchange shocked her greatly. "At that time, FTX was very popular and was known as the second largest exchange in the world. Everyone was very confident, including many ordinary traders. So when it suddenly collapsed, many people's funds were stuck, and I was one of them."
This incident made her realize that even seemingly stable large exchanges are at risk of bankruptcy. "This taught me a lesson: no matter how big the exchange is or how famous it is, asset allocation is always the most important thing."
Lawyer Mao Dong emphasized that diversifying risks and not putting all your eggs in one basket is the only way to invest in cryptocurrencies.
Having witnessed the prosperity and dangers of the cryptocurrency world, Lawyer Mao Dong decided to do his best to bring more positive impact to this emerging field. In her daily legal consultation, she has come into contact with countless victims of fraud. Their tearful accusations and the despair of having their life savings gone to waste are deeply engraved in her heart. Therefore, in addition to providing professional legal services, Lawyer Mao Dong also devotes himself to anti-fraud publicity work.
In addition to exchange risks, there are also constant reports in the cryptocurrency circle about well-known exchanges going bankrupt or being investigated, causing panic among investors. Lawyer Mao Dong reminds us that these exchanges may create a glamorous image by sponsoring large-scale events or celebrity endorsements, but there may be illegal activities or risk control issues behind this. Therefore, investors must keep their eyes open and make careful assessments.
What is installed on the mobile phone APP?
Exchanges: ACE, Pie, BingX, Binance, Bybit, Crypto.com, Bitfinex, BitTorrent, CoinList (public ICO platform), Gate.io, AAX, OKX
NFT：OpenSea
Information sources: X, Telegram, Coinmarketcap
What is your current investment allocation philosophy?
Having experienced the baptism of the market, Mr. Mao Dong’s current investment strategy tends to be conservative. “Of course, I also came into contact with many small coins at the beginning, but because of my busy work, I didn’t have much time to track information. I found that small coins need to be entered and exited quickly, and I often missed the opportunity.”
Therefore, Lawyer Mao Dong’s current investment portfolio mainly consists of mainstream currencies such as Bitcoin (BTC) and Ethereum (ETH) that have large market capitalization, high liquidity, and relatively mature development. She believes that these currencies have stood the test of time, are relatively resistant to declines, and have brighter future developments. Although she occasionally touches small coins with potential, she will strictly limit their proportion in the overall assets to avoid excessive exposure.
Based on the confidence in the long-term value of mainstream currencies, Lawyer Mao Dong adopts a long-term holding strategy. She does not seek the excitement of short-term trading, nor does she buy and sell frequently due to short-term market fluctuations. This strategy allows her to avoid emotional decision-making and reduces transaction costs and risks.
In addition, the lessons learned from the FTX incident made her deeply aware of the importance of exchange risks. Therefore, she chose to disperse her assets across different exchanges, including domestic legal and compliant platforms, to reduce the risk of a single exchange going bankrupt or being hacked. She also stressed the importance of choosing secure exchanges and diversifying across multiple exchanges to further reduce risk.
What should newcomers to the cryptocurrency world pay attention to?
The cryptocurrency world, an emerging field full of innovation and opportunities, has attracted the attention of countless people, but it has also become a hotbed for fraud groups. From fake exchanges and fake investment projects to gentle traps on dating apps, fraudulent methods are endless and constantly being innovated.
Lawyer Mao Dong said helplessly that Taiwan has a serious fraud problem. She receives 3 to 5 legal consultations on virtual currency fraud almost every day. In December last year, there was an astonishing figure of NT$400 million in fraud in a single day.
"Today's fraud methods are changing with each passing day, making it difficult to guard against them." Lawyer Mao Dong said that according to her observation, the most common fraud method in Taiwan is "fake exchanges."
Fraud groups will set up fake websites that are very similar to well-known exchanges to lure investors into depositing funds. At the beginning, investors may be asked to deposit a small amount of money to gain their trust. After a large sum of money has been invested, withdrawals will be refused for various reasons, such as requiring high deposits or taxes, or claiming that the account has been frozen due to money laundering.
Lawyer Mao Dong specifically reminds that the transaction fee rates are clearly stated on the websites of regular exchanges. If you are told to pay a 10% to 30% tax when you withdraw money, it is almost certain that it is a scam.
In addition, if you encounter an investment opportunity that claims to offer "guaranteed profits", "high returns" or requires "loan investment", you should also be vigilant, as this may be a scam trap.
As cryptocurrency regulations become increasingly clear, attorney Mao Dong suggests that one can directly refer to the "List of Business Operators That Have Completed Anti-Money Laundering Registration in Accordance with the VASP Registration Regulations" posted on the website of the Securities and Futures Bureau of the Financial Supervisory Commission.
"The exchanges on these lists have been legally established in Taiwan and have completed relevant registrations. For investors who are not familiar with the cryptocurrency world, it would be more reassuring to choose these exchanges at the beginning," she said.
In addition to fake exchanges, dating scams are also common scams in the cryptocurrency world. Fraud groups will establish emotional relationships with victims through dating apps or social platforms, and then lure victims into investing in cryptocurrencies for various reasons.
What should I do if I am unfortunately cheated?
There are many opportunities to make money in the cryptocurrency world, but the risks are also great, especially scams are everywhere. Lawyer Mao Dong gave some suggestions based on his own and his clients’ real experiences.
Tip 1: Stop investing more money immediately
This is the first and most important step in stopping loss. When you realize that you may have been cheated, you should decisively refuse any request from the other party for any reason, such as paying taxes, deposits, or account unfreezing fees.
Lawyer Mao Dong emphasized: "The less money we lose, the better!" After discovering that they have been defrauded, many victims still hold on to a glimmer of hope, hoping to "make up for their losses" by continuing to invest money. The result is often that they get deeper and deeper into the trap and suffer even greater losses.
Recommendation 2: Keep all relevant evidence intact
Collecting and properly preserving all evidence related to the fraud is key to seeking legal assistance in the future.
Conversation records with the fraud group: including chat records of all communication software (such as LINE, Telegram, WeChat, etc.), email exchanges, etc. Even if the content of the conversation seems insignificant, it may become key evidence.
Transaction records: including all deposit and withdrawal records, such as bank transfer details, cryptocurrency transaction records (including transaction time, transaction amount, transaction object wallet address, etc.).
Screenshots of fraudulent websites or platforms: Take screenshots of all pages of the fraudulent website or platform as much as possible, especially those that display the investment amount, returns, and withdrawal rules.
Other relevant information: For example, contracts, promotional materials, identity documents (even if forged) provided by the fraud group, etc. Any information related to the fraud should be kept.
Lawyer Mao Dong specifically reminds that some victims will delete the conversation records with the fraud group out of shame or anger, which will greatly hinder subsequent legal claims. Therefore, it is important to remain calm and preserve all evidence intact.
Tip 3: Seek professional legal assistance
Cryptocurrency fraud cases often involve complex legal issues and technical details, so it is recommended to consult a professional lawyer as soon as possible to evaluate the case and develop a plan of action for the next step.
Cat Dong's lawyer mentioned that even though the fraud syndicate is at large, they still need to receive payment through a captive account. Therefore even if it is impossible to recover the defrauded funds directly from the fraud syndicate, there is an opportunity to pursue liability against the owners of these captive accounts through legal channels and demand compensation for their losses.
Tip 4: Report the incident to the police
Although some people may think that calling the police is useless, it can actually provide the police with more information to integrate and track down, and then arrest more members of the fraud group.
Finally, the most important advice that lawyer Mao Dong gives to newcomers in the cryptocurrency circle is: "Do what you can and make good asset allocation."
She stressed that investing in cryptocurrencies involves risks and that no investment is guaranteed to yield profits. Therefore, before investing, be sure to carefully assess your risk tolerance and do not invest more than you can afford.
"The purpose of investing is to make your life better, not to put yourself under greater pressure," said lawyer Mao Dong. “If investing in a project will keep you awake at night, then it’s not suitable for you even if it may increase 100 times in the future.”
She also encouraged investors to discuss their investment plans with family and friends, especially the younger generation who can help the elders identify fraudulent information. "Many elders are afraid to tell their children after being deceived, and end up getting deeper and deeper into the trap. If family members can establish good communication channels, the occurrence of tragedies can be reduced."
More reports
He made tens of millions of dollars from sausages, but suffered a big setback at FTX! Interview with Peng Shaofu: How to avoid becoming a victim of fraud
Be sure to read these three points before buying coins! Cookie Decryption by Cryptocurrency Players: How to buy meme coins?