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130 individuals from China incurred losses of $5.13 million on GDFC tokens and the metaverse., 2026/04/19 11:38:09
In the Chinese city of Taizhou, an investigation is underway regarding a fraud case amounting to 35 million yuan ($5.13 million) linked to investments in tokens and a fictitious metaverse, as reported by local law enforcement. According to the investigation, over 130 investors fell victim to the scam.
Authorities believe that the suspects utilized facial recognition devices for transactions and counterfeit virtual tokens, luring victims with false promises of returns and marketing claims. The scheme operated from July 2020 to December 2021, offering an investment in a service that allowed purchases to be made via facial recognition. The fraudsters promised investors bonus points for each transaction, which were to be converted into a share of the business and profits. This created an illusion of legitimate technological expansion, as stated in the case materials.
The amounts of initial investments ranged from several thousand to tens of thousands of yuan. The project launched a virtual currency named GDFC, marketed as a high-growth potential asset, despite lacking real backing—essentially, it was a controlled “air coin,” entirely managed by the organizers, according to law enforcement.
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The perpetrators allegedly manipulated the token’s price artificially by simulating trading activity, as per police reports. They restricted withdrawals and persuaded investors to reinvest. Participants were encouraged to continuously purchase tokens, claiming it was necessary to maintain the asset’s value. When the project creators ran out of funds and GDFC began to decline in value, they rebranded the investment program to “Metaverse ME Coins” and offered participants token conversion to offset losses.
According to case documents, most of the funds contributed by investors ended up in the personal bank accounts of the project organizers and were spent on expensive purchases such as real estate.
The individual accused of organizing the project was sentenced to ten years in prison and fined 200,000 yuan. The court rejected the appeal.
Recently, the Northern District Court of Illinois sentenced 55-year-old Texas resident Robert Dunlap to 23 years in prison for orchestrating the cryptocurrency scheme Meta-1 Coin, in which over 1,000 investors lost approximately $20 million.
