The Wuhan police in China have cracked down on a new type of virtual currency scam called "Rug Pull," successfully recovering 200,000 RMB.

BlockBeats News, May 21st. According to the official account of Ping An Wuhan, the police in Qingshan District of Wuhan recently cracked a cryptocurrency transaction fraud case using the "Coin Chopping" technique. The suspects Ye and Li attempted to defraud Mr. Liu of RMB 200,000 by falsely claiming they did not receive the virtual currency he transferred. After the Cybersecurity Team conducted technical verification and presented evidence, the two eventually confessed to the fraud. They have been criminally detained, and all the funds involved have been recovered. The police reminded that cryptocurrency trading is an illegal financial activity and is not protected by law.

It is reported that "Coin Chopping" is a new type of cryptocurrency fraud method. Its core is that after completing a cryptocurrency transfer, the receiver falsely claims non-receipt, thereby refusing to fulfill the payment obligation, aiming to deceive the other party's assets.