Investing in Bitcoin is risky; Yashan shuts down and billions of yuan of investment goes down the drain

[51CTO.com original article] Bitcoin, as a "star investment product", has also become a major target for fraudulent platforms to deceive investors, and similar Bitcoin investment scams are emerging one after another. Recently, a Bitcoin Asia Lightning Trading Center (hereinafter referred to as "Asia Lightning") has encountered a repayment crisis and is suspected of running away. The platform once managed Bitcoin investment on behalf of customers and promised investors fixed dividends and cash withdrawals at any time. However, a few days ago, "Asia Lightning" not only stopped dividends, but also closed its website, and investors' hundreds of millions of yuan of funds disappeared.

It is understood that "Yashan" mainly attracts social investors by establishing several WeChat groups. Investors purchase Bitcoin on well-known domestic Bitcoin trading platforms such as Huobi.com and Bihang, and then entrust the purchased Bitcoin to "Yashan" for trading. At the same time, "Yashan" promises to pay investors a dividend of 1.3% in the form of Bitcoin every day regardless of whether the price of the currency rises or falls, and the principal can be withdrawn at any time.

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With the recent sharp fluctuations in the price of Bitcoin, a new profession has gradually emerged in the circle, commonly known as "moving bricks". These "brick moving" porters pay attention to major Bitcoin trading platforms every day. Once they find a price difference, they buy Bitcoin from the low-priced platform and sell it on the high-priced platform, making a profit from the price difference. This is the source of profit for "Yashan".

But after running for 9 months, on January 3-4, 2017, the dividends of "Yashan" began to be delayed, and the website was suddenly closed at noon on January 5. Currently, the member website is still unable to log in.

It is worth mentioning that since 2016, the Bitcoin market has been very hot. In the past year, Bitcoin has risen from 2400 points to nearly 9000 points, with a cumulative increase of more than 270%, which is much higher than many domestic investment products. However, on January 6, three Bitcoin trading platforms were interviewed by the central bank and local regulatory authorities, and the price of Bitcoin plummeted. "Asian Flash" also began to flee during this sharp drop.

According to investors of "Yashan", this incident affected nearly a hundred people and the amount involved in this case is at least hundreds of millions of yuan.

It is worth mentioning that the current domestic regulatory authorities have not explicitly banned the existence of Bitcoin transactions, but investors should still choose formal investment channels. The announcement issued by the central bank on January 6 also reiterated that according to the "Notice on Preventing Bitcoin Risks", Bitcoin is a specific virtual commodity, does not have monetary attributes such as legal compensation and compulsion, does not have the same legal status as currency, and cannot and should not be circulated and used as currency in the market. Institutional and individual investors should have a correct view of virtual commodities and virtual currencies, invest rationally, bear their own risks, maintain their own property security, and establish correct monetary concepts and investment concepts.

[51CTO original article, please indicate the original author and source as 51CTO.com when reprinting on partner sites]