Sichuan Man Loses 3.46 Million Yuan in Cryptocurrency Scam; Police Recover Funds

On May 1, the Gaoping Public Security Bureau in Sichuan Province, China, recently cracked a cryptocurrency fraud case in which the victim, Yang, was deceived out of 3.46 million yuan by an online acquaintance, Deng. In December 2025, Yang saw an advertisement for cryptocurrency investment online and consulted Deng. Deng immediately recommended a project that promised guaranteed profits, leading Yang to make an initial transfer of 20,000 yuan. Subsequently, Deng sent daily screenshots of profits and continually persuaded Yang to invest more. Under the influence of trust and the lure of high returns, Yang ultimately invested a total of 3.46 million yuan, agreeing to receive the principal and interest in one lump sum at maturity. When the agreed payout date arrived in April 2026, Yang discovered that Deng had blocked him and disappeared, prompting him to report the incident to the police. The Gaoping police, through analyzing the flow of funds and conducting multi-dimensional data analysis, identified Deng’s hiding places in Hunan and Jiangxi provinces. In late April, they captured him after a long-distance operation and seized assets worth over 600,000 yuan related to the case. Investigations revealed that Deng had no stable income and was heavily in debt due to high spending. From late 2025 to March 2026, he fabricated cryptocurrency projects to defraud victims, using the illicit funds to buy property, cars, and pay off debts. Deng has since been criminally detained, and efforts to recover the stolen funds are ongoing.