Rising Crypto Scams in China: The Point Running Phenomenon
A new scam has emerged in China, dubbed “point running.” This scheme is causing significant financial losses among local investors. The scam involves moving cryptocurrency through various accounts under the guise of earning commissions and rewards. Many victims, new to digital assets, fall for this, believing they are participating in legitimate transactions.
Chinese authorities report that cryptocurrency’s growing popularity has made locals more vulnerable to such scams. The scam is often presented as a side hustle, where participants manually transfer crypto between accounts. In reality, these activities often serve as money laundering operations for illicit enterprises.
In more advanced versions of the scam, victims are tricked into depositing their cryptocurrency into platforms that claim to automate the “point running” process. Initially, victims see small returns, which encourages them to invest more. However, when they attempt to withdraw their funds, they find their money has disappeared.
One notable case involves a local resident named Wang, who was introduced to the scam through a WeChat group. He invested over 300,000 yuan ($42,112) after seeing minor returns. When he tried to withdraw his funds, he received a screenshot confirming the transaction, but the money never arrived, and his balance vanished. Wang ultimately lost 280,000 yuan ($39,305) in the scam.
Authorities warn that these scams are on the rise as more locals become familiar with cryptocurrencies. Despite China’s ban on several activities related to digital assets, including mining and trading, these scams persist. Victims are often lured by promises of high returns with minimal effort, but these schemes frequently lead to financial loss and are linked to money laundering.
Indodax Hack: Damage Control on Instagram
Indodax, an Indonesian cryptocurrency exchange, recently launched a campaign on Instagram to mitigate customer concerns following a $22 million hack. The campaign offers 3 million rupiah (almost $200) every hour to three winners who participate in a comment competition on posts by the exchange and its CEO, Oscar Darmawan. This initiative aims to maintain customer engagement and trust while the platform remains shut for an ongoing investigation.
The hack, reported on September 11, targeted Bitcoin, TRX, POL, and other ERC-20 tokens. Security firm SlowMist confirmed the details of the exploit. This incident follows a major hack at WazirX, a significant exchange in neighboring India, which suffered a $230 million exploit two months prior.
WazirX, operated by Singapore-based Zettai Pte and its Indian subsidiary Zanmai India, sought a six-month reprieve from the Singapore High Court to reorganize its debts and shield itself from creditor claims temporarily. Similarly, North Korean state hacking group Lazarus has been accused of the cyber attack on Indodax.
During the annual Seoul Defense Dialogue on September 11, South Korean Prime Minister Han Duck-soo identified North Korea’s crypto thefts for nuclear development as a global security threat. Han announced that the South Korean government is developing “core strategic technologies” to prevent such cyberattacks.
Human Trafficking and Pig Butchering Scams in Southeast Asia
Pig butchering scams are becoming more prevalent in Southeast Asia, according to AMLBot, a crypto compliance and investigation firm. These scams, a type of romance scam, involve scammers gaining victims’ trust and manipulating their emotions to extract funds. In August, these scams accounted for $3.2 million in victim losses, up from $1 million in July.
AMLBot’s investigations reveal that large-scale pig butchering syndicates are concentrated in Cambodia, Myanmar, and the Philippines, often run by Chinese crime lords. These operations involve human trafficking, with children kidnapped from India and Nepal, trafficked to compounds in Laos, and forced to work as scammers.
Traditionally, criminal proceeds from these scams were laundered through crypto exchanges. However, they are now often funneled through Huione Pay, a foreign exchange business owned by Huione Group, which also operates the multibillion-dollar marketplace Huione Guarantee.
Elliptic, a crypto forensics firm, reported in July that Huione Guarantee has become a preferred platform for pig butchering scammers in Southeast Asia. Merchants on the platform have transacted over $11 billion. Chainalysis, another forensics firm, corroborates these findings, noting a shift from elaborate Ponzi schemes to quicker scams like pig butchering, targeting individuals on social media.
Blockchain Adoption in Philippine Education
The Philippine Science High School (Pisay) will adopt blockchain technology to manage and verify student
