China Cracks Down on Fake Crypto Accounts Promoting Illegal Trading

China’s internet regulator, the Cyberspace Administration, has reportedly closed more than a dozen fake crypto accounts and websites accused of disseminating false information about stock and cryptocurrency markets.

According to Baidu, these social media accounts were spreading unlawful stock tips and making speculative claims about virtual currency trades. Specifically, the Weibo account “Love Stocks App” and the Douyin account “Value Discoverer” were accused of sharing misleading details regarding institutional transfer arrangements, financing, and margin trading.

The WeChat public account “Captain Jack Macro Strategy” circulated false rumors concerning regulatory policies on quantitative funds. Meanwhile, the Baidu Baijia account “Northern Bear Cat” spread inaccurate reports about changes to capital market trading hours.

Multiple accounts across WeChat, Weibo, and Kuaishou platforms employed suggestive language to lure investors into paid groups. These fake crypto accounts promised insights on specific stocks, hinted at guaranteed stock trend predictions, and promoted certain stock purchases as foolproof investments, engaging in unlawful stock recommendation practices.

Numerous Weibo accounts have been found encouraging users to engage in virtual currency trading by sharing group chat invitations and displaying screenshots of alleged profits. “Domestic website platforms such as pkex, weex, and htx provided application download services or indirect trading services for overseas virtual currency trading platforms,” the Baidu report stated.

Two accounts on Xiaohongshu and another two on Baidu Baijia have come under scrutiny for promoting misleading narratives like “professional anti-collection,” “debt optimization,” “full refund,” and “negotiated repayment.” 

These fake crypto accounts allegedly circulated fabricated success stories to lure financial consumers into pursuing potentially illegal or improper methods for debt resolution. Authorities say the posts not only misled users but also disrupted the financial market’s order and infringed on the legal rights of financial institutions.

“The cybersecurity and informatization department hereby reminds the majority of netizens to establish correct investment concepts, enhance risk prevention awareness, strengthen financial information identification, do not spread rumors, do not believe rumors, stay away from illegal financial activities, and be careful to prevent personal property losses or information leaks,” the report wrote. 

Furthermore, China’s cybersecurity and informatization authorities emphasized their commitment to maintaining a strict crackdown on illegal online financial activities. The agency also encouraged the public to remain vigilant and report any suspected violations to help uphold market integrity and digital security.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.