On July 9, the Beijing Internet Finance Industry Association (BIFA) issued a notice urging retail investors to reject Web3 pitchbooks that rebrand pyramid schemes as “stablecoin wealth plans” or “Web3.0 dividends.”

BIFA listed five hallmarks of illegal fundraising: unlicensed operation, jargon to mask gaps, false guarantees, recycling deposits to pay earlier participants, and links to money laundering. It advised verifying licences with regulators and warned investors that high returns carry risks and that they remain liable for any losses.

source: CryptoSlate

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