China warns that high-profit transactions of Web3 and DeFi conceal classic Ponzi motives.

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The Beijing Internet Finance Industry Association (BIFA) issued a notice on July 9, calling on retail investors to reject pyramid-style sales materials that use cryptocurrency terminology. BIFA warns about "stablecoin asset plans" and "Web 3.0 dividends" promising fixed returns.

The announcement lists five characteristics of illegal fundraising, including unlicensed activities and misleading guarantees. BIFA advises the public to verify the company's license and to be aware that high returns often come with high risks.

In addition, BIFA reminds victims that they may be held responsible for any losses under Chinese regulations. The association also recommends reporting any unlicensed activities to the police or financial supervisory authorities.

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