Shenzhen Warns of Stablecoin Scams as Public Interest Soars

- Shenzhen alerts public to scams exploiting stablecoin buzz. - Fraudsters misuse terms like 'digital assets' for illegal gains. On July 7, 2025, Shenzhen’s financial regulatory task force issued a public warning about scams disguised as stablecoin investment projects, according to reports from CoinDesk and Crypto News. The warning details how these schemes exploit public interest and a limited understanding of stablecoins, using the facade of "financial innovation" and "digital assets" to conduct illegal activities such as fundraising, gambling, and money laundering. Authorities have identified unscrupulous entities that promote fraudulent investment ventures with exaggerated promises of financial returns. Furthermore, officials from Shenzhen’s illegal financial activities prevention task force stressed that individuals participating in such schemes bear sole responsibility for any financial losses and urged the public to stay alert, avoid offers with unrealistic guarantees, and report suspicious activities to the relevant authorities. This warning aligns with China's strict regulatory stance on cryptocurrencies and its ongoing efforts to safeguard investors and maintain financial stability. Meanwhile, market data from July 7 showed most major stablecoins holding their peg despite minor fluctuations. PayPal USD (PYUSD), Tether USDt (USDT), USDD (USDD), and Dai (DAI) were all trading at $1. USD Coin (USDC) was also priced at $1, while TrueUSD (TUSD) traded slightly below its peg at $0.997. All data was accurate as of 07:15 UTC.