Bitcoin Exit Scams, State-Sponsored Hacks and a Very Expensive Valentines Day

From alleged exit scams to state-sponsored hacking and $6.1 million Valentines day gifts – it’s all happening in China right now.

EtherDelta Busted

Police in China have apparently begun investigating crypto trading platform EtherDelta over an exit scam. Partner at crypto investment fund Primitive Ventures, Dovey Wan, made the revelation yesterday on crypto twitter.

EtherDelta is involved in a major scam in China, police officially take legal action against it. The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017

JUSTIN and 🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️ EtherDelta is involved in a major scam in China, police officially take legal action against it The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017 Highly recommend western media to follow up @coindesk @Cointelegraph pic.twitter.com/eGPm8wor8k — Dovey Wan 🗝 🦖 (@DoveyWan) August 7, 2019

She added that ‘furious’ investors of the EDT token blew the whistle to local police who launched an official investigation, and that Chinese police will show ‘no mercy’ if a crypto scam involves a large amount of retail capital.

After a heavy SEC fine, founder Zack Coburn sold the platform to a group of Chinese businessmen who issued the EDT token as an exit scam.

State Sponsored Crypto Hacking?

According to a FireEye Threat Intelligence report that emerged last week, a hacking collective called APT41 has started working alongside the Chinese government. The report added that the group has targeted a number of firms operating in the crypto industry.

The group has also targeted cryptocurrencies, including at least one case in which there was a connection between cryptocurrency and an online video gaming platform. In October 2018, the group compiled an instance of XMRig, a Monero cryptocurrency mining tool, demonstrating a continued interest in cryptocurrency.

The dossier insinuated that there were connections with the Chinese authorities, adding that the group’s operations underscored a blurred line between state power and crime.

Bitcoin, a Perfect Gift in China

Finally, crypto whales in China have been sending BTC to each other as a display of love and affection on their version of Valentine’s Day. August 7 is also known as the Qixi or Qiqiao Festival celebrating the annual meeting of a cowherder and weaver girl in mythology. Dovey Wan has been tweeting again about the number 520 which in Chinese is pronounced similar to “I love you”.

Rich Chinese crypto whales today are busy sending the symbolic 520 $BTC to their loved ones as gift

Rich Chinese crypto whales today are busy sending the symbolic 520 $BTC to their loved ones as gift 😳😳😳 the number 5-2-0 is pronounced similar to “I love you” 我爱你 wo3 ai4 ni3 in Chinese So sweet and so rich 😎😎😎 pic.twitter.com/ccvkab5fxf — Dovey Wan 🗝 🦖 (@DoveyWan) August 7, 2019

At current bitcoin prices the recipients of these romantic gestures will be $6.1 million better off.

Will Chinese hunger for bitcoin drive the next rally? Add your thoughts in the comments below