ChainCatcher news: Ms. Zhang from Tianjin was scammed out of over 260,000 yuan this month, with the fraudulently obtained money withdrawn in Xingguo County. The Xingguo police acted quickly, arresting 8 criminal suspects and dismantling a virtual currency money laundering "water room" operation, seizing 200,000 yuan in related funds.It is reported that the suspect Li Mouyuan provided bank accounts to the money laundering gang to assist in their laundering activities and withdrew over 260,000 yuan while knowing that the funds were involved in online illegal activities. After receiving the cash withdrawn by Li Mouyuan, the money laundering gang fled back to Yuzhou, Henan, and handed the involved funds to the virtual currency money laundering "water room" suspect Hou Moupeng. Hou Moupeng then exchanged the over 260,000 yuan in cash obtained from the fraud into virtual currency U offline, transferring it to a designated virtual currency address, ultimately achieving the laundering and whitening of the involved funds.The police successfully dismantled the money laundering den, arrested multiple suspects, and recovered part of the involved funds.

ChainCatcher News, the U.S. Securities and Exchange Commission's Office of Investor Education and Advocacy has issued a warning highlighting five common cryptocurrency scams that investors should be wary of to avoid losses. The SEC warns that fraudsters are exploiting the popularity of cryptocurrencies, employing sophisticated techniques that make it difficult to recover funds.First, scammers establish trust through social media or unsolicited text messages, pretending to be acquaintances. They quickly move the conversation off the initial platform to build a relationship and present lucrative cryptocurrency investment opportunities. They create seemingly legitimate but fake websites that display false profits and allow small withdrawals to build trust, only to later request large sums that become inaccessible.Second, scammers capitalize on the hype surrounding emerging technologies like artificial intelligence (AI). They use buzzwords related to AI and high-return promotions to attract investments. AI technology is also used to create realistic websites, marketing materials, and deepfake content that impersonates celebrities or trusted individuals to gain credibility.Third, scammers impersonate trusted sources, including government agencies like the SEC. They use AI technology and hacked social media accounts to send messages that appear to be from friends or family, promoting fraudulent investment opportunities. Even if the promotions seem to come from well-known figures, they could be scams.Fourth, the SEC warns: fraudsters may exploit cryptocurrency assets for pump-and-dump schemes, including so-called "meme coins" that reference popular culture or internet memes. "For example, scammers might create a memecoin and then heavily promote it on social media—sometimes calling it a 'pre-sale'—to entice others to buy and 'pump' or inflate its price. Then, the promoters or others working with them will 'dump' or sell before the hype ends, profiting from the inflated price," the securities regulator points out. "Typically, after the promoters sell and profit, the price will quickly drop, leaving others who bought the tokens with significant losses."Finally, scammers request additional fees for withdrawals, known as advance-fee fraud. They may claim that accounts are frozen or under investigation, or ask for repayment of alleged erroneous deposits. Scammers also target previous victims, promising to help recover lost assets while demanding additional fees or private keys, leading to further losses. Ultimately, the SEC advises investors to avoid making decisions influenced by unsolicited contacts or social media recommendations, emphasizing the necessity of independently verifying any claims and exercising caution with investments that require payment through cryptocurrency assets.