Chinese authorities warned citizens on July 7 against illegal fundraising efforts based on cryptocurrency stablecoin. This announcement comes as the crypto industry has been hit by a surge of scams, fraud and theft.
The recent increase in scams such as "pig butchering" and "four-dollar wrench attacks" show just how vulnerable today’s crypto users are. Most of the time threat actors use complex social engineering techniques to fool people.
The Department of Justice’s move on July 8 was historic. Among other artifacts of law enforcement cooperation, they unsealed an indictment against two men who allegedly orchestrated a massive $650 million crypto scam. This type of legal action highlights the importance of the issue as well as the growing efforts to fight the problem.
Social engineering scams, such as phony crypto support scams, are surging in popularity. Some groups reportedly associated with North Korea have been accused of planning similar attacks on cryptocurrency users. For instance, the Meeten campaign was used in social engineering attacks against cryptocurrency investors back in December 2024.
Cybersecurity company Darktrace reported on the sophisticated social engineering schemes used to target crypto users, noting how easily wallets can be compromised through social media scams.
Crypto wallets continue to be drained in elaborate social media scam - Darktrace
Of course, the immediate target of the warning from Chinese authorities was stablecoins, frequently dubbed the “killer” use case for crypto. The shootout follows the U.S. Department of Justice’s increased and intensified crackdown against crime in the crypto sphere. They have indicted two men for their roles in a jaw-dropping $650 million crypto fraud.
