AI Quantitative Wealth Platform Scam — Using AI+DeFi as a Cover to Induce High-Yield Investment

Who Gets Targeted

Victims are mostly individual investors lacking financial expertise, white-collar workers pursuing rapid wealth in the workplace, and small and micro business owners. They generally have blind trust in AI technology, a strong desire for high returns, and weariness with the cumbersome approval processes of traditional financial channels. They are easily trapped by professional jargon about so-called 'AI quantitative models' and promotions of 'zero risk, 30% monthly returns.'

骗局怎么运作

• The project team publishes promotional articles about so-called 'AI quantitative models' on social platforms such as Telegram and Weibo, claiming to use deep learning algorithms to capture cryptocurrency price fluctuations in real time, guaranteeing monthly returns of 30% to 70%, and providing a 'free trial' link that guides users to fill in personal information and pay a small 'verification deposit' for identity confirmation.
• Victims enter the so-called 'AI trading system.' The system displays realistic profit curves and real-time trading records, which are actually generated from fake trading data preset by back-end scripts, inducing novice investors to add funds. It also uses urgency phrases such as 'limited-time flash sale' or 'double in the first month' to force users to quickly transfer funds to designated crypto wallet addresses.
• The platform requires users to bind a digital wallet and authorize a smart contract, promising that returns will be automatically transferred to the user's wallet. In reality, the contract embeds withdrawal restriction clauses, allowing withdrawals only after the so-called 'platform review' is passed. The review process is delayed indefinitely or directly rejected, making it impossible for users to recover their funds.
• After users invest large amounts of funds, the platform suspends the trading interface under the name of 'system maintenance' or 'security check,' then deletes social accounts and the official website. The operating team switches to overseas servers via VPN, making it difficult for victims to trace, and the funds fall into a black hole.
• Some victims try to contact customer service, and most replies they receive are 'The AI customer service is learning, please wait later.' This is essentially a bot-like perfunctory response. Eventually the platform completely loses contact, with cumulative amounts involved reaching hundreds of millions of yuan.

红旗信号（看到这些快跑）

• 🚩 Promises fixed high returns and 'no risk,' but has no compliance filing or regulatory information
• 🚩 Requires payment of a verification deposit, handling fee, or 'entry fee' first, with amounts often ranging from several thousand to tens of thousands of yuan
• 🚩 Official channels are limited to community groups and personal accounts, with no corporate website or filing number
• 🚩 Provided trading data significantly differs from real market conditions, often showing impossible increases
• 🚩 Withdrawals are restricted, always with vague excuses such as platform maintenance, audit, or compliance checks

真实案例

• In December 2023, the Shenzhen Public Security Bureau reported the 'Zhongshengming Quantitative AI Wealth Management Scheme' case, involving more than RMB 300 million. The victims were mainly small and medium-sized business owners and individual investors. The platform used AI quantitative trading as a cover to carry out illegal fundraising.
• In June 2024, the 'China Zhipu AI' project was exposed on Chapan.com as a fake AI virtual currency hype scam, cumulatively defrauding investors of approximately RMB 8 million. Its promotion used many AI technical terms but had no substantive technical support.
• In May 2024, 'OneAgent Hermit Crab,' an AI quantitative virtual currency scam disclosed by the First Code Alliance, was operated by the same team behind Jubi Exchange. The amount defrauded was approximately RMB 120 million, with victims across multiple provinces and cities nationwide. The platform likewise used AI+DeFi as a gimmick to induce large transfers.

Official Stance

• 2024-06-20 Eight departments jointly issued 'Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters,' clearly stating that illegal fundraising activities packaged with new technologies such as AI and DeFi will be severely punished in accordance with the law.
• 2024-07-15 The China Securities Regulatory Commission issued 'Virtual Currency Investment Risk Warning,' warning investors not to readily believe so-called AI quantitative high-return promises.
• 2023-12-20 The Shenzhen Public Security Bureau reported the 'Zhongshengming Quantitative AI Wealth Management Scheme' case and launched criminal case filing, involving the crime of illegally absorbing public deposits.

How to Protect Yourself

• ✅ Before investing, be sure to verify whether the platform is registered with the China Securities Regulatory Commission or the central bank. Legitimate platforms will provide regulatory approval documents and clear business licenses.
• ✅ Be highly vigilant against any project that requires paying a 'verification deposit,' 'entry fee' first, or binding a digital wallet and authorizing a contract. Do not transfer funds to unconfirmed addresses.
• ✅ Check the platform's credit records through official channels (such as the official websites of financial regulators), and avoid making decisions based solely on community recommendations or celebrity endorsements.
• ✅ If you encounter forced additional investment or blocked withdrawals, promptly preserve chat records and transfer receipts, and report to the local public security organ and financial regulator as soon as possible. Do not continue transferring funds on your own. When reporting, bring screenshots of contract authorization and wallet addresses, and simultaneously submit the fraudulent website to the National Anti-Fraud Center App.