Beijing News: "Cutting Leek" Routine Frequently Out of Virtual Currency Trading Platform

On March 25, the Beijing News reported that according to the investigation, the virtual currency trading platform "cut leek" routines frequently appeared, including fraudulently deceiving customers into the market through fake transactions, and then forced customers to liquidate their positions by manipulating market prices and malicious downtime. Some platforms have even become a tool for criminals to launder money. The article summarizes the routine as follows:
1. The transaction volume is abnormally high, and customers are attracted to the market through fake transactions;
2. The malicious downtime forces the leveraged trading to “sell out” and manipulate the market;
3. Take advantage of the anonymization and decentralization of virtual currencies to launder money for criminals;
4. The project party and the exchange are "like one another" and have a team full-time "pull the disk";
5. The new financing method was launched, and people were suspected of pyramid schemes.