ChainCatcher news, according to The Paper, the Chief Prosecutor of the Supreme People's Procuratorate, Ying Yong, delivered the work report of the Supreme Procuratorate at the third session of the 14th National People's Congress. In 2024, the procuratorial organs prosecuted 825 individuals for securities-related crimes such as financial fraud and insider trading, and 3,032 individuals for money laundering crimes involving the use of "virtual currency" to transfer criminal proceeds.

ChainCatcher news, according to the Cybersecurity Bureau of the Ministry of Public Security, counterfeit DeepSeek websites and Trojan viruses have appeared online, causing great distress and security risks to the public.It is reported that a criminal gang launched a blockchain project called "DeepSeek," claiming to be a distributed ledger project developed based on DeepSeek technology, attracting many investors to participate in crowdfunding. After raising a large amount of funds, the team disappeared. Recently, many people have been pulled into the so-called "DeepSeek official group," where some claim to provide "beta testing qualifications" or "advanced courses," and created a virtual currency called "DeepSeekCoin," attracting a large number of investors to purchase, resulting in all the funds invested by investors being lost.The cyber police remind everyone to take precautions, download the genuine DeepSeek from the official website and mainstream application markets, and be vigilant against various security risks to avoid the possibility of downloading counterfeit programs from the source.

ChainCatcher news, according to Caixin, OpenAI has released the latest large model GPT-4.5. According to the provided documentation, the "highly emotional" GPT-4.5 performs exceptionally well in donation scams.In a test, GPT-4.5 had a much higher success rate in attempting to manipulate another model (GPT-4o) to "donate" virtual currency compared to other available models from OpenAI, including reasoning models like o1 and o3-mini.Research found that GPT-4.5 seems to have developed a concept of "small-scale scams" in adversarial situations, resulting in the amount of money scammed per instance being half that of deep research models.

ChainCatcher News, the Chinese Embassy in South Korea's official WeChat account published a typical case of a virtual currency "pig slaughtering" scam, revealing that a certain international student, under the romantic pressure from his girlfriend, became firmly convinced that he could make money by "trading virtual currency" and entrusted his account to her for management, subsequently transferring over 300,000 RMB for "recharging." The Chinese Embassy in South Korea reminds that online dating carries risks and not to believe in investment schemes that claim to have "insider information" and guarantee profits.

ChainCatcher news, according to Modern Express, a Chinese man was found dead in a hotel in Jeju, South Korea, suspected to have been murdered during a virtual currency transaction.The South Korean police have arrested four Chinese suspects, including two women in their 30s, one man in his 30s, and one man in his 60s. It has been confirmed that the four suspects fled with 85 million won belonging to the victim, and investigations into the motive and circumstances of the crime are ongoing.

ChainCatcher news, according to the announcement from the Beijing Third Intermediate People's Court, recently, the Beijing Third Intermediate Court and Renmin University of China jointly held a project demonstration meeting for the Supreme People's Court's major judicial research topic for 2024, "Research on the Disposal of Involved Virtual Currencies." Representatives from the Supreme Court, the Supreme People's Procuratorate, the Ministry of Public Security, and experts from academia and enterprises attended the seminar.The meeting discussed the disposal paths for involved virtual currencies and the construction of future regulatory systems, emphasizing that research results should be combined with judicial practice to assist national financial security. Zhai Chao, Deputy Chief Judge of the Third Criminal Division of the Supreme Court, suggested that the research should highlight characteristics and meet practical needs. In the future, the research team will deepen investigations and collaborate with judicial and financial regulatory authorities to promote the regulation of virtual currencies and the improvement of judicial adjudication rules.

According to ChainCatcher news and the Guangzhou Daily, Guangdong courts recently concluded a virtual currency fraud case. The defendant, Xie, established Company A and issued a virtual currency named "AA Chain," promising investors that the currency would be listed on exchanges and yield high returns.The case shows that in May 2018, Xie established Company A in Guangdong and served as its legal representative. He promoted "AA Coin" on internet platforms as having appreciation potential and promised victims that it would be listed for trading on exchanges, with expected returns of no less than 5 million yuan. One investor thus invested 990,000 yuan to purchase over 1.6 million AA Coins, but these tokens remained locked and could not be traded.The court found that the defendant, Xie, aimed to illegally possess others' property by fabricating facts to defraud them, with the amount being particularly large. He was ultimately sentenced to 11 years in prison for fraud and fined 50,000 yuan. The judgment has taken effect.

ChainCatcher news, according to Sing Tao Daily, Joy Lam, the Head of Compliance and Legal Affairs for Binance in the Asia-Pacific region, stated in a recent interview that Hong Kong's regulatory framework for virtual assets is relatively cautious and is moving in the right direction. He suggested that further relaxation of restrictions could allow more virtual asset products and services to enter the local market while ensuring the protection of investors' rights.However, he did not directly respond to market concerns about whether Binance intends to return to the U.S. market or enter the Hong Kong market, only emphasizing that the Asia-Pacific region is the engine of global economic growth and that the local cryptocurrency usage rate is relatively high. He hopes to participate in and support the development of the local virtual asset market in different ways.

ChainCatcher news, the Tianing Court has concluded a contract dispute case involving "USDT" as the investment object. In 2021, Jiang met Lin through an introduction by others and established a WeChat group to trade "USDT." Between 2021 and 2022, Jiang transferred approximately 100,000 RMB to Lin via WeChat and bank transfers, and Lin purchased about 76,000 U coins for him. Jiang also purchased 81,000 U coins as directed by Lin. Following Lin's instructions, Jiang transferred his held U coins to the platform multiple times for Lin to operate, but all funds were exhausted by Lin's operations, leading Jiang to file a lawsuit in court.The court found that the plaintiff Jiang claimed that the dispute between the two parties was a guarantee contract dispute, and that a civil entrustment financial management contract relationship regarding the virtual currency U coin investment project was established between them. The entrustment transactions and management issues concerning the virtual currency U coin between Jiang and Lin are currently not regulated and protected by law in our country, and the consequences of their actions should be borne by Jiang himself. Therefore, the court ruled to dismiss Jiang's lawsuit request.

ChainCatcher news, according to Guangming.com, Ms. Cheng from Hefei and her boyfriend were preparing to sell their USDT for RMB, involving over 277,000 USDT.After completing the transaction with her friend Sun, Ms. Cheng was informed that the cash of over two million was provided by someone else and that the transaction would only be considered complete if it was transferred to another account. Meanwhile, Ms. Cheng's virtual currency had already been transferred to Sun's account, and Sun claimed that his phone was infected with a virus, which prohibited any operations with the U coin. Consequently, Sun reported to the police, and the police arrived at the scene.Ms. Cheng believes that this was a trap set up by the three individuals in collusion. According to the latest information from the Xinzhan Branch of the Hefei Public Security Bureau, the police have filed a case for fraud in this matter, and Ms. Cheng has received the case notification.

ChainCatcher news, Hong Kong listed company Zhu Di Holdings announced that it plans to register a wholly-owned subsidiary, Zhu Di Digital Technology Co., Ltd., to engage in virtual currency mining business, including the construction of virtual currency mining farms and the operation and hosting of virtual currency mining farms, has announced the termination of its virtual currency mining business. The board of directors has decided to terminate the new business activities immediately.

ChainCatcher news, according to Hong Wang reports, the Criminal Investigation Team of the Shaoyang County Public Security Bureau received a tip-off about a quick fund transfer. A sum of money related to fraud was withdrawn by someone in Wufengpu Town, Shaoyang County. After receiving the tip, the investigating officers quickly launched an investigation and arrested a suspect named Wu.During the interrogation, Wu confessed to contacting fraudsters for profit by providing his bank card to receive the fraudulent funds, and illegally exchanging them for virtual currency to hand over to the higher-ups in the criminal organization. Currently, Wu has been criminally detained in accordance with the law, and the case is under further investigation.

According to ChainCatcher news, a research report released by Consensus indicates that the cryptocurrency adoption rate in the Asian market has reached 22%, which is about three times the global average (7.8%).Michael Lau, Chairman of Consensus Hong Kong, stated that the Asian market's significant position in the blockchain and cryptocurrency sector is growing day by day. Hong Kong, in particular, has vast development prospects in digital assets and Web3. As an international financial center, it is crucial for citizens to engage with virtual assets and explore how to connect Hong Kong dollar stablecoins with a broad banking ecosystem.

ChainCatcher news, according to Ming Pao, the Hong Kong Securities and Futures Commission (SFC) has previously approved the listing of exchange-traded funds (ETFs) for Bitcoin and Ethereum futures and spot trading. When asked whether it would consider allowing the launch of leveraged and inverse (L&I) ETFs for virtual currencies, SFC Chief Executive Officer Ashley Alder responded that the volatility of the relevant assets would be taken into account, and if their volatility is not significant, the approval for the issuance of related leveraged and inverse products would be considered.Alder also mentioned that the SFC will soon issue a circular allowing issuers to launch ETFs with alternative investments as assets, which will include relevant investor protections.

ChainCatcher News: The website of the Central Commission for Discipline Inspection and the National Supervisory Commission of China recently published an article pointing out that the integrity risks in the construction of financial information systems are becoming increasingly prominent, especially the issues of "difficult management, difficult supervision, and difficult accountability" caused by high professional and technical barriers.During the investigation of the corruption case of Yao Qian, the former director of the Science and Technology Supervision Department of the China Securities Regulatory Commission (CSRC), the discipline inspection and supervision team stationed at the CSRC discovered that he used virtual currency for power-for-money transactions, which were highly concealed and difficult to gather evidence. Yao Qian accepted huge bribes through his position, providing assistance to others in the procurement of information systems, involving project contracting, fund allocation, and other aspects.In response to the issues exposed by the case, the discipline inspection and supervision team proposed supervision opinions to the CSRC Party Committee, urging the strengthening of integrity risk prevention and control in information system procurement, and reinforcing system construction and implementation. At the same time, it emphasized the need to strengthen the education, management, and supervision of professional and technical personnel, especially the "top leaders," to correct the erroneous thinking of some cadres who believe their integrity risks are low, and to enhance their political awareness and discipline consciousness.In November last year, Yao Qian was subjected to disciplinary review and supervisory investigation by the discipline inspection and supervision team stationed at the CSRC and the Shantou Municipal Supervisory Commission in Guangdong Province for serious violations of discipline and law. This case further highlights the importance of integrity risk prevention and control in the field of financial technology supervision.

ChainCatcher news, according to Caixin, the Supreme People's Procuratorate announced today the situation of the comprehensive deepening of procuratorial reform work in 2024. It mentioned that relevant departments will collaborate to formulate judicial interpretations, improve judicial norms for punishing criminal cases related to securities and futures, money laundering, and harming tax collection and management, and more effectively punish crimes such as illegally transferring assets abroad using virtual currencies, tax evasion, and fraudulently obtaining export tax refunds.Improve the equal protection mechanism for various types of business entities, and legally supervise and correct the use of criminal means to intervene in economic disputes, illegal sealing, confiscation, and freezing of property, especially issues related to illegal cross-regional law enforcement and profit-driven law enforcement. Enhance the working mechanism of the Supreme People's Procuratorate stationed at the China Securities Regulatory Commission, and strengthen the coordination and cooperation between financial regulatory enforcement and judicial work.

ChainCatcher news, according to reports from China National Radio, recently, in Yanbian Korean Autonomous Prefecture, Jilin Province, China, a criminal network involving underground banks with a case amount exceeding 1 billion yuan and spanning 10 provinces across the country was cracked down, with over 20 criminal suspects arrested. At the same time, the successful investigation of this case has also unveiled the criminal underbelly of using virtual currency to provide channels for fund transfers. This case is characterized by family-style operations, meaning that the gang members are mostly relatives and friends. They disguise themselves as overseas companies, engaging in low buying and high selling in the domestic and foreign exchange black market, profiting from the exchange rate differences.The main suspect, Zhang Liang, confessed that they borrowed foreign exchange funds from "peers" or used methods such as "exchanging" virtual currency to purchase virtual currency with RMB from cryptocurrency traders and dealers within the country, and then sold the virtual currency overseas to obtain foreign exchange, thereby indirectly achieving the goal of transferring illegal gains from within the country to overseas. Yanbian Economic Investigation stated that by analyzing the sources and uses of funds in underground bank cases handled by public security organs in the prefecture from 2020 to 2023, it has been verified that a large proportion of the involved funds are from labor services, commerce, and tourism, while the rest are suspected funds related to fraud, corruption, and other illegal activities.

ChainCatcher news, according to the Jiangsu High Court's official WeChat account, the Jiangsu High Court has released typical cases involving foreign-related commercial trials, stating that overseas virtual currency investments are not protected by Chinese law. In the relevant case, Singaporean citizen Pan XX and Chinese citizen Tian XX signed a cooperation agreement with a third party to jointly operate the "MFA Blockchain" project. Pan XX transferred 15.74 million yuan to Tian XX for the purchase of MFA virtual currency, but later the virtual account involved in the case was locked, resulting in the total loss of the principal. Pan XX filed a lawsuit in court.The Jiangsu High Court, in its second instance, held that Pan XX is a Singaporean citizen, and the case has foreign-related factors. According to China's law application rules, matters involving China's financial security and social public interests should directly apply the mandatory provisions of Chinese laws and regulations, which prohibit virtual currency investments. In this case, the parties signed a contract to speculate on overseas virtual currencies, violating the mandatory provisions of China's financial regulatory field. Therefore, the investment losses claimed by the parties are not protected by law, and the resulting losses shall be borne by the parties themselves.

ChainCatcher news, the People's Court of Tongzhou District, Nantong City, Jiangsu Province, heard a case regarding the conversion of virtual currency investment funds into a loan, rejecting the repayment lawsuit request from the plaintiff Han. Han and Ji were friends, and Ji suggested Han invest in Tether, claiming it could yield high returns. Han purchased 2,000 Tether through a platform, with Ji managing the investment on his behalf.However, Ji did not fulfill his promise, prompting Han to report to the police and reach an agreement with Ji to convert the virtual currency trading relationship into a loan relationship. Ji issued an IOU promising repayment but failed to repay, leading Han to file a lawsuit.The court held that Tether is not legal tender and lacks the characteristics of legal repayment, making the loan agreement invalid. Even though the parties had converted the virtual currency trading into a loan relationship, the court also found that virtual currency investment activities are not protected by law, and the losses should be borne by Han. Ultimately, the court ruled to dismiss Han's lawsuit request.

ChainCatcher news, according to Jiangxi Daily, recently, the Criminal Investigation Team of the Yongfeng County Public Security Bureau in Jiangxi Province, in conjunction with the Municipal Public Security Bureau's Criminal Investigation Detachment, successfully dismantled a money laundering gang that used virtual currency for "electric fraud scoring."Since late January this year, the suspects Liang Mouyong, Zeng Mou, and Zhang Mouyong formed a "electric fraud scoring" team for profit, gradually recruiting others and developing a network. Liang Mouyong was responsible for using "paper**" overseas chat software to contact fraudsters for orders, while Zeng Mou and Zhang Mouyong were responsible for finding card farmers, collecting more than 10 bank accounts through borrowing and inducement, which were used to receive illegal funds. After the illegal funds were received, they were converted into virtual currency to achieve the purpose of money laundering. From January 24 to February 3, the gang transferred over 100,000 yuan.Currently, Liang Mouyong, Zeng Mou, and 6 others have been criminally detained by the public security organs according to the law, while Wen Moubo and Gao Moubing have been administratively punished by the public security organs according to the law. The case is still under further investigation.