Chinese Crypto Fitness App Reportedly Under Investigation For Fraud

A Chinese cryptocurrency health app has reportedly been positioned underneath investigation for allegedly unlawful fundraising practices and medium of exchange fraud.

Nikkei Asian Review reported the information on Dec. 18, citing paperwork on the face of it accessed by its associate publication, KrASIA.

Investors in oblivion

According to the report, the market governor in Changsha, the capital of Hunan province, is investigation a health app that secure to reward customers with cryptocurrency “candies” in alternate for being lively.

By clocking 4,000 stairs a day for 45 days, customers of the app, dubbed “Qubu,” may purportedly earn 15 candies, which may then be listed certain money or accustomed unlock app options promising greater rewards.

The candies have been purportedly marketed as “wealth direction instruments” with a profitable provide of a 36.8% return over a 60 day interval. The funding scheme urged customers to recruit extra app customers “downline” to earn extra revenue. Qubu purportedly claimed to have on-boarded 95 million registered customers by December of this 12 calendar months.

Nikkei notes this determine with suspicion, pointing to its implication that just about one in 10 cell customers throughout China would wish to have been registered for this declare to be true.

Trading on Qubu’s in-app alternate reportedly carried dealings processing charges of as excessive as 25-50%.

One investor instructed KrASIA that he had spent 15,000 yuan ($2,150) by way of Qubu in expectation of seeing a stable return, but was now in oblivion in mild of the governor’s actions.

Qubu, antecedently based mostly in Changsha, has now allegedly claimed to have relocated to the southwestern Chinese municipality of Chongqing.

Renewed clampdown?

After China’s President Xi Jinping made a seminal public endorsement of blockchain expertise this October, the nation’s official media has been cautioning the general public to stay “rational” and to keep away from what’s perceived to be the speculative excesses affiliated crypto buying and selling.

At to the last degree 5 Chinese cryptocurrency exchanges suspended or elite to terminate operations final calendar month in response to a perceived redoubling of Beijing’s anti-crypto stance, with some studies claiming that current developments characterize “the biggest cleanup” of the cryptocurrency sphere since Beijing’s historic rout in Sept. 2019.

Chinese Crypto Fitness App Reportedly Under Investigation For Fraud

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