Initial Coin Offerings Draw Fraud Warning From China Trade Group
- Funding mechanism has raised an estimated $1.6 billion
- Investors should report wrongdoings to police, group says
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The rise of initial coin offerings in China has disrupted the social economic order and poses a financial risk, a domestic trade group said.
Institutions have misled investors to raise funds through ICOs, the National Internet Finance Association of China, an organization endorsed by the State Council and top finance and banking watchdogs, said in a statement on Wednesday. Unauthorized by regulators, some of the ICOs are suspected of fraud, illegal equity offerings and fundraising, the group said in a statement.