π Coin Zero Investment Scam! Chinese Public Security Labels It as Pyramid Selling, Daily Sign-ins Hide Deadly Traps

Bank of China Sichuan Branch received two elderly customers inquiring about cashing out “π Coin,” with project promotions claiming “zero investment high returns” and forging “official partner bank lists.” The staff uncovered the scam and identified it as online pyramid selling by public security authorities. Scam breakdown: daily sign-ins create false activity, fake bank cooperation enhances trust, ultimately leading to investments or recruitment of downstream.

The Three-layer Fraud Logic of the π Coin Forged Bank Endorsement

The core of the π Coin scam lies in forging authoritative endorsements to build trust. Criminals produce a “cooperative bank list” including Bank of China and several other branches, even forging bank logos and official document formats, causing victims to mistakenly believe it is a legitimate project approved by financial regulators. This method is especially effective among the elderly, who have high trust in banks; seeing “bank cooperation” often makes them lower their guard.

Staff clarified to the customer: domestic banks have never cooperated with the “π Coin” project, nor do they support any illegal virtual currency transactions and withdrawals. The state explicitly states that illegal virtual currency transactions are not protected by law. This clear official denial is the first step in breaking the trust chain of the scam. Bank staff not only verbally informed the customer but also provided a police alert issued by public security authorities regarding the scam, using official documents to confirm the fraudulent nature.

After patient explanation, case analysis, and evidence presentation, the two customers finally recognized the scam’s truth, expressed deep gratitude to the staff, deleted the scam-related app on the spot, and exited the promotional WeChat group, promising not to contact such projects again. This case highlights the crucial role of financial institutions in anti-fraud education and also demonstrates the high level of trust elderly people place in authoritative explanations.

The Three Main Schemes of the π Coin Scam

Daily Sign-in “Mining” to Create False Activity: Criminals require users to sign in daily and click, claiming “mining” to obtain π Coins, but in reality, this increases the platform’s false activity. This design creates the illusion of “time investment,” forming a sunk cost trap that makes users more willing to invest money later.

Forged Bank Cooperation List to Enhance Credibility: Producing a “list of official cooperative outlets” including major banks like Bank of China and Industrial and Commercial Bank of China, even forging bank seals and authorization documents. This method is highly deceptive, causing victims to mistakenly believe the project is approved by financial regulators.

Inducing Investment or Recruitment of Downlines: Initially allowing users to “mine for free” to accumulate a certain amount of π Coins, then demanding recharges with reasons like “withdrawal requires activation” or “VIP upgrade to accelerate mining,” or asking to develop downlines to gain more “computing power.” This pattern conforms to typical pyramid schemes, establishing a multi-level structure through recruitment.

Legal Consequences of Public Security’s Definition of Pyramid Selling

Public security alerts clearly classify the π Coin scam as online pyramid selling fraud. According to China’s “Anti-Pyramid Selling Regulations” and Article 224 of the Criminal Law, organizing or leading pyramid schemes can result in up to 15 years imprisonment and fines. Participants who develop more than 30 downlines and reach over three levels may also face criminal liability.

More importantly, the state explicitly states that illegal virtual currency transactions are not protected by law. This means that even if victims invest large sums in the π Coin project, once the project collapses or runs away, they cannot recover losses through legal channels. Past cases show that recovery rates for virtual currency scams are extremely low, often less than 10%, with most victims losing everything.

The harm of the π Coin scam is not only financial loss but also the destruction of social trust. Many victims joined through friends or family recommendations; when the scam collapses, it not only results in monetary loss but can also cause family conflicts and social relationship breakdowns. Moreover, the elderly, due to their lack of awareness of online scams, are often the main victims, losing their retirement savings, with very serious consequences.

Five Key Signals to Identify Virtual Currency Scams

The public should stay alert and recognize key signals of virtual currency scams: Promises of “high returns with zero investment” are always a scam, as all investments carry risks; claims of cooperation with banks or government agencies should be verified—call official bank customer service or visit branches directly, do not trust project promoters’ unilateral claims; demanding recruitment of downlines for more benefits is a typical pyramid scheme feature, consistent with China’s legal definition of pyramid selling; requiring recharge to activate withdrawals is a common scam tactic—once recharged, funds are unrecoverable; unknown project team identities or foreign locations are major risk signals, and rights protection after problems is nearly impossible.

Never trust false propaganda about “virtual currency” or “mining,” and avoid joining unfamiliar promotional groups. If you have doubts, always verify through the national anti-fraud app, official bank customer service, or offline branches, to safeguard your “money bag.” If you have already participated in similar projects, stop investing immediately, preserve relevant evidence, and report to public security authorities at once.