Rise of Point Running Crypto Scams in China
Point Running Scams Target Chinese Investors
A new cryptocurrency scam called “point running” has emerged in China, causing significant financial losses among locals. The Public Security Bureau issued a warning on September 10, highlighting the scam’s mechanics and its impact on unsuspecting victims.
Point running involves moving cryptocurrency through multiple accounts under the guise of earning commissions or rewards. Newcomers to the crypto world are often lured into these schemes with promises of easy money. In reality, they may be laundering funds for criminal operations without their knowledge.
The scam is often presented as a side job where participants manually transfer crypto between accounts. However, newer versions automate the process, making it appear even simpler. Victims initially receive small returns, encouraging them to invest more money.
One notable case involved a man named Wang, who was invited to a WeChat group and convinced to invest in USDT. Wang installed an app, initially investing 8,000 yuan (about $1,125) and later increasing his investment after seeing minor returns. By August, he had invested over 300,000 yuan ($42,112). When he tried to withdraw his funds, he received a screenshot confirming the transaction, but the money never arrived, and his balance vanished.
Wang’s story is a stark reminder of the dangers of such scams. Authorities warn that as cryptocurrency becomes more popular in China, more people may fall prey to these fraudulent schemes.
Indodax Responds to Hack with Social Media Campaign
Indodax, a cryptocurrency exchange, recently lost $22 million in a hack on September 11. In response, the company launched a giveaway campaign on its Instagram account to reassure customers. The campaign promises 3 million rupiah (almost $200) every hour to three winners who participate in a comment competition on posts from the exchange and its CEO, Oscar Darmawan.
The hack targeted Bitcoin, TRX, POL, and other ERC-20 tokens, as reported by security firm SlowMist. Indodax customers are now waiting for the results of an investigation into the incident.
The Indodax hack follows a similar incident involving WazirX, a major exchange in India, which lost $230 million in a hack. Both exchanges have been linked to North Korean state hacking group Lazarus. During the annual Seoul Defense Dialogue on September 11, South Korean Prime Minister Han Duck-soo highlighted North Korea’s crypto theft activities as a global security threat. He announced that the South Korean government is developing “core strategic technologies” to prevent such cyberattacks.
Human Trafficking and Pig Butchering Scams in Southeast Asia
Rise in Pig Butchering Scams
Pig butchering scams, a type of romance scam, are increasing in Southeast Asia, according to crypto compliance and investigation firm AMLBot. In August, these scams accounted for $3.2 million in victim losses, up from $1 million in July.
Pig butchering scams involve scammers building trust with victims over time to extract funds from them. AMLBot’s investigations reveal that large-scale pig butchering syndicates are operating in Cambodia, Myanmar, and the Philippines, often run by Chinese crime lords.
Human trafficking is also linked to these scams. Children are kidnapped from India and Nepal and trafficked to compounds in Laos, where they are forced to scam victims into sending cryptocurrency.
Traditionally, criminal proceeds were laundered through crypto exchanges, but now they are funneled through Huione Pay, a foreign exchange business owned by Huione Group. Huione Guarantee, a marketplace operated by Huione Group, has become a preferred platform for pig butchering scammers in Southeast Asia. Merchants on the platform have transacted over $11 billion.
AMLBot’s findings align with those of forensics firm Chainalysis, which reports that scammers are shifting from elaborate Ponzi schemes to quicker scams like pig butchering that target individuals on social media.
Blockchain Adoption in Philippine Education
Blockchain for Student Records
The Philippine Science High School (Pisay), a top public high school in the Philippines, is set to adopt blockchain technology to manage and verify student academic records. This initiative, reported by local broadcaster ABS-CBN, aims to streamline the process of accessing and managing student records, which traditionally required in-person visits.
By implementing blockchain, the new system ensures that records are accessed securely and conveniently online, providing faster and more efficient service while maintaining the integrity and authenticity of academic
