In the context of the rapid development of Blockchain technology, criminal activities related to Virtual Money are becoming increasingly rampant, with various cases ranging from fraud to Money Laundering occurring frequently, causing huge losses for global investors and highlighting the urgency of strengthening regulation and investor protection.

Recently, several typical scam cases have attracted attention. In the Minhang District of Shanghai, a criminal gang successfully defrauded over 35 million yuan by issuing the worthless so-called "GDFC coin" and then fled. In the case from Yunmeng County, Hubei, the criminals cleverly used the pretense of security audits to secretly manipulate virtual money prices, causing losses of up to 77.76 million yuan for 103 investors. These scams all exploit investors' lack of understanding of Blockchain technology and their blind pursuit of high returns.

What is even more concerning is that virtual money is becoming a new tool for money laundering. In a case in Dalian, Liaoning, the main perpetrator illegally raised 21.4 billion yuan and instructed others to purchase a large amount of virtual money and transfer funds through complex means, fully exposing the potential risks of virtual money in cross-border anonymous transactions.

Globally, losses from virtual money crimes are surging. According to a report by Hacken, losses in the coin circle exceeded $3.1 billion in the first half of 2025, far surpassing the total for 2024. Another agency, CertiK, reported related losses reaching $2.47 billion, primarily due to vulnerabilities in access control and smart contracts. In the face of this severe situation, regulatory agencies in various countries are intensifying their crackdown. For example, the United States recently imposed sanctions on the Philippine company Funnull and its managers, whose fraudulent activities led to losses of over $200 million for American investors.

Against this backdrop, investor protection has become particularly important. Financial regulatory authorities around the world have issued warnings, reminding investors to beware of high interest temptations and to treat virtual money investments with caution. As criminal methods continue to evolve, both regulatory agencies and investors need to remain vigilant and enhance their knowledge of blockchain and virtual money to better address the challenges of this emerging field.