A lot of elderly Chinese people are eager to take their pensions and use them to buy NFTs, mine coins, and make cryptocurrency investments even if they don’t comprehend blockchain.
The Paper claims that a fraud initiative dubbed blockchain is thriving and is specifically targeting China’s senior population. The narrative of sixty-year-old Ms. Xiao Zhu is one of them that is garnering attention. The nephew claims that receiving a little gift after attending a “seminar” marked the beginning of the swindle. The conference host identified himself as the general manager for a well-known company’s regional office. They extend an invitation to many people to hear about their prosperous financial experiences.
These individuals initiated a somber, magnificent discourse on economic knowledge, announcing that China was advancing the digital economy. Additionally, the organization provided participants blockchain-related papers.
Persuaded by her recent financial education, Ms. Xiao Zhu has given up using a smartphone. She therefore provided these individuals money to invest on her behalf. You are able to mine a few tokens each day. You may sell them once the price increases,” she said to her granddaughter. She made 20,000 yuan in profit with a capital of 30,000 yuan. She took her whole pension to continue after realizing a profit. Her account could no longer be withdrawn shortly after that. It was also unable to get in touch with the deposit receiver.
Experts say that this kind of leverage trading is essentially a “playing the drum and passing the flowers” situation. Those that arrive later basically lose money, even if the early players could profit.
Ms. Xiao Zhu was nevertheless persuaded to purchase NFTs in order to make up for her losses following the aforementioned investment swindle. She borrowed an additional 250,000 yuan this time and joined a larger group where hundreds of members had distinct levels. Individuals who arrive initially prompt those who arrive later to seek out the elderly in order to request funding.
Lanjinger claims that this kind is common in rural regions. A few individuals lost up to ten million yuan.
Many social media users claimed that their parents were addicted to “coin mining” after reading Ms. Zhu’s story. Most people don’t know who Satoshi Nakamoto is, they don’t know the difference between bank electronic money and virtual money, and they think the virtual money in their account is Bitcoin, which will increase in value in the future. They were informed that anyone could “make money by taking attendance” and that virtual currency would become widespread.
A number of Shandong and Fujian provinces’ regulatory bodies have sent out alerts about illicit virtual currency investment vehicles. Additionally, experts frequently caution that the majority of projects classified as this kind of blockchain are worthless and that the tokens are not listed on recognized exchanges. Nevertheless, thieves entice victims using the “donkey and carrot” tactic, in which the gains are visible to them but out of reach of their hands.
Many con artists work on several levels; some even pose as “blockchain experts” to give the impression that they are knowledgeable, and elderly individuals who are gullible are prone to believing in villains dressed in high-tech garb. Since they have already planned their departure, it will be impossible for the victims to get their money back, even if they are found and reported.
