TechFlow, on August 6, the Economic Observer published an article titled "Annualized Yield as High as 540%? Investigation into the Chaos of Virtual Asset Investment," which points out that reporters found some virtual asset investment platforms currently active in the market using keywords such as decentralization, blockchain, and virtual assets. These platforms package their projects with terms like blockchain technology, smart contracts, DeFi, and Defai (DeFi+AI).
Many illegal projects are packaged under concepts such as "DeFi decentralized finance," "DApp wealth management," and "stablecoin mining," but in essence remain fundraising and return-based schemes, merely using a technological facade to conceal risks.
Shao Shiwei, head of the criminal department at Shanghai Manqin Law Firm, stated that promoting projects promising "high returns, low risk, stable principal repayment" to unspecified members of the public via social media, WeChat groups, or offline meetings—often involving promises of fixed returns and encouraging continuous sharing and recruitment—meets the criteria for illegal absorption of public deposits.
