Don't be fooled by the scammers pushing RWA
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Don't be fooled by the scammers pushing RWA
What they fear most is that you know a little legal常识 and dare to be the child who exposes the emperor's new clothes on the spot.
Navigating Web3 tides with focused insightsBy: Liu Honglin
Yesterday at Manqin Law's Shenzhen office, we encountered a project team that left Attorney Honglin no choice but to speak up.
The visitor claimed to be a key figure behind a certain exchange, saying they're now "heavily investing in RWA," having already secured various resources and funding—only needing legal support. Through a Web3 friend’s referral, they came looking for Manqin Law to draft some compliance documents and complete procedures so the project could launch immediately.
At first, the atmosphere was quite professional. He went on and on about his team background, global trends, and grand visions… so much that my colleague almost got swept away. I didn’t interrupt right away, until I asked a few basic questions.
I first asked: What exactly is your underlying RWA asset? Does it actually exist? Do you have clear proof of ownership, title documentation, or custody agreements? He hesitated, replying things like “it’s handled by our partners,” “we’re negotiating acquisition,” or “the process is ongoing.”
Then I asked who the token would be issued to—and whether they intended to promote it within mainland China. As soon as I mentioned this, he emphasized it was a “global platform.” But clearly, their exchange is active across mainland communities and offline promotions, with primary investors being traditional business owners from mainland China. To claim this doesn’t involve the mainland? Either you don't understand, or you're pretending not to.
Finally, I asked about the fund flow path. How exactly are the funds raised going to come in? Have you set up segregated accounts? Will funds be received uniformly overseas, or will part of the money come directly from domestic users? At this point, he visibly panicked, saying “an operator will handle it,” “users pay in USDT,” and “there will be technical solutions to avoid risks”—but after all that, he still couldn’t clearly explain the cross-border fund route.
I asked seriously; he responded evasively, shaking his head and claiming I just “don’t understand Web3, don’t understand finance.” At that point, I completely lost interest and simply ended the meeting, showing him out.
RWA Has Become the New Disguise for Scammers
This isn’t the first time I’ve met teams using the banner of “RWA” to scam.
Whether on Douyin, Xiaohongshu, or in cities like Shanghai, Shenzhen, or Hong Kong, you’ll always see a wave of people calling themselves “RWA project consultants,” “asset tokenization operators,” or “blockchain transformation experts,” starting WeChat groups and printing business cards to discuss structural design, financing plans, and compliance pathways.
Their clients generally fall into two categories: one is small-to-medium enterprise owners with tight cash flow who believe the myth that “tokenizing assets equals instant fundraising”; the other is transitioning investors or entrepreneurs chasing trends but haven’t truly grasped what RWA entails.
These scammers love creating hype. Every few days there’s another “RWA Ecosystem Conference” or “Blockchain Transformation Fundraising Salon.” On stage, speakers passionately declare this as the real-world application of Blockchain 3.0, while the audience consists of only two types: those wanting to launch tokens and those wanting to pump prices. Their so-called “consulting services” are essentially matchmaking intermediaries—connecting capital with projects and inflating valuations along the way. Whether it's legal or not doesn’t matter—as long as deals get closed.
The套路 isn’t complicated. First, spin a grand global narrative: “The U.S. is pushing RWA, and Hong Kong legislation exists for this purpose.” Then present a flashy PowerPoint boasting claims like “backed by 500 million in assets, approved by authorities, collaborating with top universities.” Next, partner with compliant中介机构 and service providers to generate materials, obtain a “legal opinion letter,” or even falsely claim “soon listing on a major exchange.”
But where are the actual underlying assets? How does the fund flow work? Does it involve illegal public fundraising in mainland China?
No one dares answer—because one question exposes the fraud.
A Friendly Reminder from Manqin Law
Many think scammers fear tightening regulations or media exposure—but that’s not true. What they really fear is someone with basic legal knowledge who dares to stand up and be the child pointing out the emperor has no clothes.
The person I met wasn’t asked complex legal questions—just common business sense.
First, I asked where the underlying asset actually was, whether it existed, and if there were formal documents proving ownership, title, or custody. He started dodging: “handled by partners,” “acquisition in progress,” “process ongoing”—yet never produced any credible material. The truth? He only wanted to raise money. What happens afterward wasn’t his concern.
Second, I asked who the token was meant for and whether they planned to target mainland China. He quickly insisted it was a “global platform,” yet all materials were in Chinese, promotion relied on WeChat groups, communities, and KOLs, and the whitepaper explicitly stated “serving Chinese-speaking investors.” Claiming it’s not targeting the mainland is pure deception.
Third, I asked how the raised funds would be managed. Were segregated accounts established? Would funds be centralized overseas or partially circulated domestically? I pressed further: How do you plan to transfer funds across borders? He clearly panicked, saying “we can technically bypass restrictions” and “an operator will manage it,” but failed to clarify any details. It was obvious—not that he hadn’t thought about it, but that he had no lawful plan to safely move the money.
Many RWA projects thrive in these gray areas. Ask about assets, they talk vision; ask about fund flows, they cite global strategy. What they really want isn’t legal advice—but an endorser, a “legitimate shell” willing to stamp approval.
Therefore, Attorney Honglin hopes this article reminds everyone of three key points—to help you efficiently avoid 99% of scams.
First, clearly verify the authenticity and title path of the underlying asset. Is it existing or projected? Self-held or custodied? Are there ownership proofs or audit records? These determine whether your token represents real value or is just vaporware.
Second, examine whether the target investors and fundraising methods cross red lines. Mainland China’s definition of illegal fundraising leaves little room for interpretation. No matter how “decentralized” you claim to be, if you’re promoting via WeChat and offline events to mainland residents, you fall under the logic of “raising funds from unspecified individuals.”
Third, clearly understand how funds come in, how they move, and who controls them. Are there segregated accounts? Custody arrangements? Clear documentation of fund usage? How do funds move from overseas to domestic accounts—and is it legal and compliant?
As a law firm dedicated to Web3.0 legal services, we remain committed to one principle: ensuring Web3.0 develops legally within China. We love and believe in this industry—but we also uphold standards and底线.
Manqin Law does not take illegal cases, nor do we lend legitimacy to unlawful projects. We’d rather do less business than become scapegoats. If you’re a genuine project aiming to build, we welcome the conversation. But if you walk in demanding we “just do the work” and “don’t ask questions,” sorry—we likely won’t listen to your pitch either.
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