#Gate广场四月发帖挑战 Five-country joint crackdown! The world’s largest metaverse coin crashes; 80,000 accounts frozen overnight; the shocking scam behind a 97% drop

Latest April 7 update: Japan’s Financial Services Agency, the Monetary Authority of Singapore, Germany’s Federal Financial Supervisory Authority, the Canadian Securities Administrators, and the Central Bank of Brazil jointly issued a statement today, officially categorizing the SpaceChain Coin (SPC) as a “cross-border illegal fundraising tool,” and launching a global asset recovery process. As of the time of publication, the project token price has plunged 97.8%, falling from a peak of $37 to $0.81; 83,000 investor accounts have been frozen; and the amount involved exceeds $4.2 billion. This scam, packaged as a “metaverse infrastructure revolution,” has been exposed as regulators’ iron fist cracked down.
Regulatory surprise raid: Five countries join forces to freeze 80,000 accounts overnight
Late night on April 6, financial regulators in five countries took synchronized action against SpaceChain Coin, launching a “global crackdown”:
Japan: Freeze 12,000 domestic investor accounts, with $680 million involved
Singapore: Seize the project headquarters, arrest three core members, freeze $2.1 billion in assets
Germany: Shut down 23 fake “space mining machine” rental websites, with $370 million involved
Canada: Freeze SPC trading pairs on cryptocurrency exchanges, restricting fund transfers
Brazil: Intercept $320 million in cross-border illegal funds, freeze 15,000 investor accounts
The joint announcement noted that SpaceChain Coin, through fabricated “metaverse satellite network” and “space mining machine rental” businesses, absorbed funds from unspecified people worldwide with an entry threshold of $50,000, promising a fixed monthly return of 15–20%. Its operating model fully matches the three major characteristics of illegal fundraising: unlicensed activity, promises of high returns, and fundraising from unspecified targets.
Scam packaging: From “space blockchain” to the “metaverse infrastructure leader”
SpaceChain was founded in 2017. It initially marketed itself under the banner of “blockchain + space technology,” claiming it would launch 72 micro-satellites to build a decentralized space network. After shifting to the metaverse concept in 2025, it began fabricating the myth of being a “metaverse infrastructure leader”:
1. False technical endorsement: It claimed cooperation with NASA and ESA, saying it held “space mining machine” patents, could perform blockchain calculations on satellites, and produce SPC tokens
2. High-threshold temptation: It set up a “space mining machine rental plan” with a minimum investment of $50,000, dividing investors into tiers such as “Bronze,” “Silver,” and “Gold,” with higher tiers offering more tempting returns
3. Wealth-myth marketing: It posted fake cases on social media such as “investors recoup their investment in 3 months” and “assets triple in half a year,” and hired influencers to build a “space mining to get rich” persona
4. The essence of a Ponzi scheme: Funds from new investors were used to pay “returns” to old investors, while the project team extracted 30% from it as “technical service fees”—a typical Ponzi scheme operating model
Triggering the collapse: German hackers expose shocking evidence of forgery
The scam was exposed due to anonymous disclosures on March 15 by a German hacker organization called “Data Justice League.” They published internal emails and financial records from SpaceChain, revealing three key frauds:
1. Satellite fraud: The so-called “three blockchain satellites have been launched” is purely fabricated. Only one failed satellite launch-and-carry experiment was conducted in 2021, and no blockchain functionality was achieved
2. Mining machine scam: The “space mining machine” is actually just an ordinary server. The so-called “space computing” is a fake program running in ground data centers. The $50,000 paid by investors could only rent an ordinary server worth $800 for one year
3. Misappropriation of funds: Of the $4.2 billion raised, only 5% was used for technical R&D; the remaining 95% was transferred to anonymous accounts in tax havens such as the Cayman Islands and Bermuda. The project founder squandered more than $1.2 billion to buy luxury homes and private jets
After the disclosure was released, SPC’s price plunged 40% that day, triggering panic selling among investors and ultimately prompting joint investigations by regulators from five countries.
Investor heartbreak: From dreams of getting rich to getting nothing back
Among the 83,000 investors, 42% are from Asia, including high-net-worth individuals and professional investors. A Singaporean investor revealed that he mortgaged his property and invested $2 million; now his account has been frozen, leaving him facing a plight of homelessness. Even more heartbreaking is that many retired elderly people put their life savings into it, hoping to secure retirement support through “space mining.”
“They said it was the future of the metaverse, a technology that could change the world. I put in 800,000 Singapore dollars I saved my whole life—now I have nothing.” A 62-year-old retired teacher in Singapore sobbed.
Regulatory bodies remind investors that they can submit loss declarations through official channels, but considering that most of the funds have already been transferred, the final proportion that can be recovered may be less than 10%.
Regulatory storm escalates: Global crackdown on virtual currencies fully kicks off
This joint action is not a coincidence, but a concentrated crackdown by global regulators on disorder and chaos in the virtual currency space:
1. China regulation: In February 2026, the central bank and eight other departments jointly issued a notice clarifying that virtual currency-related businesses constitute illegal financial activities, and comprehensively ban domestic virtual currency trading, exchanges, and other activities
2. EU rules: Starting April 1, the “Markets in Crypto-Assets Regulation” (MiCA) officially takes effect, requiring all crypto asset service providers to obtain authorization and strictly enforce anti-money laundering and investor protection requirements
3. U.S. action: On April 1, the U.S. Department of the Treasury released a report to strengthen efforts to crack down on illegal financial activities involving digital assets, focusing on money laundering and illegal fundraising activities that use virtual currencies
It is worth noting that regulators from the five countries specifically emphasized that the SpaceChain scam exposed the risk of the metaverse concept being abused. They warned investors: any “metaverse investment” that promises fixed high returns is 99% a scam.
Scam identification guide: How to avoid virtual currency investment traps
Faced with a stream of virtual currency scams, ordinary investors should remember the following four points:
1. Beware of “high-yield promises”: Fixed annualized returns above 10% are very likely Ponzi schemes; there is no business in financial markets that guarantees profit no matter what
2. Refuse “technical black boxes”: Any project wrapped in vague concepts such as “space technology,” “quantum computing,” or “metaverse infrastructure,” yet refuses to disclose core technical details—keep away from it without exception
3. Verify regulatory credentials: Any legitimate financial product must be authorized by the financial regulatory authority in its country. Do not touch projects without authorization
4. Stay away from “recruiting headhunters” referral models: Projects that require developing downlines and paying rebates by tier are essentially pyramid schemes—do not participate
When the metaverse bubble bursts, only the unwise are left floundering alone
When space dreams become a cover for illegal fundraising, and the metaverse concept becomes a sickle for cutting down “grass,” we finally understand: real value is never built on lies, and real wealth has never had a shortcut.
Virtual currencies are not monsters, but when they are used to fabricate scams and plunder wealth, they must be severely punished by law. This SpaceChain coin collapse is a profound wake-up call for all investors—on the road to chasing wealth, keeping your bottom line intact matters more than chasing returns.
Is your investment safe?
Have you encountered similar virtual currency investment traps? What are your views on the metaverse concept? Feel free to share your experiences and opinions in the comments so more people can see the truth and stay away from scams.
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