Crypto Scams Affecting Chinese Nationals Domestically and Abroad
Despite mainland China's ban on cryptocurrency trading, crypto scams remain prevalent among Chinese nationals through underground OTC markets, pig butchering operations, and fake mining or staking platforms — with overseas Chinese communities facing particularly high targeting rates.
Part of: Crypto Scams
Last reviewed: 1 June 2026
Mainland China prohibits cryptocurrency transactions, yet crypto fraud persists through informal channels. Many Chinese nationals — particularly those living abroad in the UK, US, Australia, Canada, and Southeast Asia — are actively targeted by pig butchering and investment scams operated by Chinese-speaking criminal networks.
The crypto ban means mainland victims have even fewer official recourse mechanisms than victims in countries with regulated crypto markets. The People's Bank of China (PBOC) and Ministry of Public Security issue warnings but enforcement against internationally operating fraud networks remains challenging.
How this scam works on China
Chinese nationals abroad are recruited through WeChat, dating apps, or Chinese-language social media into what appears to be a crypto investment opportunity shared by a social contact or romantic interest. The scheme mirrors standard pig butchering: small profits appear on a convincing platform before withdrawal is blocked.
In mainland China, underground OTC crypto brokers recruit through private WeChat groups, promising to convert yuan into crypto at favourable rates. Victims send yuan via Alipay or WeChat Pay to what they believe is an OTC broker; instead, the funds are stolen.
Fake crypto mining pools and staking platforms advertise guaranteed daily returns and recruit through WeChat friendship groups. Victims deposit funds expecting to earn staking rewards; the platform eventually disappears with all deposited capital.
Common red flags
- WeChat or social media contact offering crypto investment with guaranteed daily returns
- OTC crypto broker reachable only through private WeChat groups with no verifiable business registration
- Crypto staking or mining platform that promises fixed percentage returns regardless of market conditions
- Withdrawal requests met with demands for additional deposits, tax payments, or verification fees
- Investment contact who appeared on a dating platform and quickly pivoted to crypto discussion
How to protect yourself
- Be aware that crypto trading remains illegal on the Chinese mainland — any domestic platform is unregulated
- Never send yuan via Alipay or WeChat Pay to individuals claiming to be OTC crypto brokers
- Verify overseas crypto platforms with the relevant national regulator before depositing
- Report suspected scams to the Ministry of Public Security's cybercrime division in China
- Contact the overseas Chinese embassy or consulate for guidance on local reporting options
How to report it
- Report to China's Ministry of Public Security cybercrime reporting system at cyberpolice.cn
- If overseas, report to the host country's national cybercrime authority (e.g., IC3, Action Fraud, ACCC)
- File a report with the relevant financial regulator in your country of residence
Frequently asked questions
Can Chinese nationals abroad legally invest in cryptocurrency?
Chinese nationals residing abroad are generally subject to the laws of their country of residence regarding crypto investment. The mainland China crypto ban applies to activities within mainland China. However, pig butchering and investment scams target overseas Chinese regardless of local legality — always verify any platform with the local regulator.