Metaverse Blockchain Game 'Passive Income' Scams: Asset Devaluation and Exit Scams

Who Gets Targeted

The victims are primarily individuals aged 20 to 40 who frequently use short-video platforms and have limited knowledge of blockchain or the Metaverse, including factory workers, small shop owners, unemployed youth, and stay-at-home parents. They share a common desire for quick financial gain despite limited income. They are precisely targeted by claims of 'breaking even in three days,' 'daily passive income,' and 'guaranteed wealth,' exploiting their greed and fear of missing out. Lacking understanding of the lack of intrinsic value in virtual items or the ability of game companies to inflate supply, they mistake manipulated data for real investment, often borrowing money to increase their positions, only to lose everything.

骗局怎么运作

• Step 1: Short-video traffic generation to create the illusion of wealth. Scammers post 'passive income' tutorials on platforms like Douyin and Kuaishou, claiming that playing Metaverse games allows for effortless earnings, three-day break-even periods, and doubled assets. They use fake profit screenshots and inflammatory copy to lure people into WeChat groups, effectively linking gaming with financial gain.
• Step 2: Community brainwashing to fabricate appreciation myths. Once in the group, 'mentors' share success stories—such as a 'Mr. Wang' who supposedly bought a car after two months of play—which are actually fabricated by shills. They emphasize that virtual assets like game gear and land will appreciate, pressuring victims to join early by exploiting herd mentality.
• Step 3: Inducing the exchange of fiat for virtual currency to facilitate fund transfer. Victims are guided to exchange real currency for specific virtual coins, which are then used to buy game-specific tokens, which in turn are used to purchase virtual items. This converts fiat currency into the project's proprietary tokens, moving funds into an unregulated black box.
• Step 4: Manipulating data to create a facade of short-term appreciation. The game company manipulates backend data to show short-term appreciation of items. Early players trade among themselves to create a price curve, convincing victims that their accounts are profitable and inducing them to invest more or recruit friends and family, creating a Ponzi-like structure.
• Step 5: Shutting down and wiping out assets. Once the influx of new capital slows or the target is reached, operators freeze withdrawals under the guise of 'system upgrades' or 'policy adjustments,' then shut down servers, disband groups, and vanish. The victims' gear and tokens lose all liquidity and value instantly. Because the servers are overseas and the operators are anonymous, legal recourse is extremely difficult.

红旗信号（看到这些快跑）

• 🚩 Claims that playing Metaverse games can generate passive income, break even in three days, or double assets; promoting games as risk-free investments.
• 🚩 Requirement to exchange fiat currency for proprietary virtual coins or game tokens, with no compliant way to redeem back to fiat currency.
• 🚩 Price fluctuations of virtual gear and land are entirely controlled by the game's backend, with no third-party audit or market-based pricing mechanism.
• 🚩 Encouragement to recruit new members (downlines) for commissions, where earnings depend on new capital rather than actual game activity.
• 🚩 Servers located overseas, with no domestic registration, game licenses, or official filings.
• 🚩 Groups filled with shills posting profit screenshots; questioning is prohibited, and players who report losses are kicked out.
• 🚩 Sudden suspension of withdrawals citing 'system upgrades' or 'policy adjustments,' followed by customer service becoming unreachable.

真实案例

• In December 2021, The Paper's anti-fraud column reported on a wave of 'passive income' blockchain games. These games were advertised with claims of three-day break-even periods and daily earnings of 70,000 yuan. Reporters found that most servers were overseas, exposing players to potential Ponzi schemes and the risk of losing everything overnight.
• In February 2024, a report on the 'A/B sides of digital blockchain games' noted that resources within these games have no intrinsic value. To profit, old players rely on new players to buy in, making the model a Ponzi scheme. While some profited, others lost everything, raising questions about whether these games are financial opportunities or traps.
• From June 2024 to 2026, judicial records show that virtual asset game fraud has become a common criminal offense. In one case, a perpetrator used fake information about selling cheap game gear to defraud four victims of 11,340.51 RMB. In March 2026, the court sentenced the perpetrator to ten months in prison for fraud, with a one-year and two-month probation and a fine, warning players to be wary of 'cheap gear' scams.

Official Stance

• In December 2021, Xinhua News Agency and The Paper issued a joint anti-fraud warning titled 'Can you earn passive income playing Metaverse games? Beware of scams,' highlighting the risks of overseas servers and Ponzi schemes.
• Since December 2021, various local police anti-fraud centers have reposted warnings, stating that any project promising game-based earnings or doubled assets is high-risk.
• In February 2024, mainstream media published an in-depth investigation, 'The A/B Sides of Digital Blockchain Games: Investment Opportunity or Ponzi Scheme?', revealing that these games rely on new capital to survive.
• In June 2026, Zhejiang judicial authorities issued a warning regarding virtual asset game fraud, advising players to verify the identity of trading partners and refuse private transfers.

How to Protect Yourself

• ✅ Remember that any project claiming passive income, three-day break-even, or doubled assets is a high-risk signal. Such promises violate investment regulations; do not participate.
• ✅ Do not exchange fiat currency for virtual coins or tokens to buy gear or land. Once converted to proprietary tokens, you lose legal protection and redemption channels.
• ✅ Verify if the game operator has a domestic business license, game license, and ICP filing. Blacklist any project with overseas servers or anonymous operators.
• ✅ If you see profit screenshots, mentors pushing for deposits, or censorship in groups, leave immediately and report it via the National Anti-Fraud Center app.
• ✅ If funds are frozen or customer service disappears, immediately save transfer records, chat logs, and screenshots, and report the case to local police.
• ✅ Share official anti-fraud warnings with youth and the elderly to break the chain of recruitment.