In recent years, with the rise of concepts such as the Metaverse and Web 3.0, digital currency has become a popular investment target. However, this has been accompanied by an increase in digital currency-related crimes, most of which are financial crimes that are closely related to the unique characteristics and economic attributes of digital currencies. Below, we take a look at some common digital currency crimes and their characteristics.
Illegal absorption of public deposits/fund-raising fraud 🏦💔:
This criminal behavior mainly involves raising public deposits through illegal means, or deceiving the public to conduct fund-raising activities. In the world of digital currency, a common strategy is to raise funds through mining. Criminals attract investors by promising high returns and using online and offline promotional activities, and then use digital currency to conduct illegal fund-raising activities.
Organizing and leading MLM activities 🧩💸
MLM involves organizing or leading a multi-level marketing campaign where compensation or rebates are based on the number of people recruited. In the field of digital currency, criminals create a hierarchical relationship based on the number of recruits and the amount of investment, attract more people to join, and then defraud them of their money.
Scam 👥💔
Scams involve obtaining someone else's property through fraudulent means. In digital currency crimes, scammers often use fake digital currency trading platforms or deceptive promotions to attract investors. They lure them with high returns and then take their money.
Open a Casino 🎰💰
In the context of digital currency, this criminal behavior usually involves two aspects. On the one hand, using digital currency as a settlement tool for others to gamble on the Internet and providing them with digital currency and legal currency exchange services. On the other hand, gambling based on the market price fluctuations of digital currency is similar to traditional gambling, such as dice or card games.
Assisting cybercrime 🖥️🔒
This is one of the types of crimes that has risen in recent years. The decentralization, anonymity and convenient transaction methods of digital currencies make them a tool for criminals to launder money. Therefore, those who participate in digital currency transactions may easily be involved in assisting cybercrime activities, especially those involving the receipt of illegal proceeds.
As digital currencies become more popular, crimes involving them are also on the rise. To avoid becoming victims of these criminals, investors and practitioners should strengthen their risk awareness and compliance awareness in the field of digital currencies. At the same time, regulators are stepping up their crackdown on digital currency-related crimes to maintain financial order and social stability. Through joint efforts, we can create a safe and transparent environment for the development of digital currencies.
