A court in Pingba District, Anshun, Guizhou, sentenced a man surnamed Zhao to seven months in prison and imposed a 5,000 yuan fine after convicting him of fraud in a case involving a purported cryptocurrency airdrop investment scheme, according to ChainCatcher.
Trust built through crypto discussions
Case details show that Zhao had followed the cryptocurrency investment sector for years and had long posted investment views and financial management tips on online social platforms. The victim, surnamed Zhang, was also a crypto enthusiast. The two met on a social platform because of their shared interest and gradually became friends, regularly discussing investment strategies online.
Over time, Zhao gained Zhang’s trust with what appeared to be professional investment analysis. Zhao later proposed that they invest together, and Zhang agreed. After a period of investing, Zhang suffered heavy losses and said he did not want to continue following the trades.
A promise of 100 to 200 USDT in two days
On Aug. 23, 2025, Zhao said an app had launched an airdrop project and urged Zhang to put the remaining funds in his account into that project. The report described an airdrop as the free distribution of a project’s native tokens to eligible users for promotion, user participation incentives, or rewards for loyal users.
Zhao told Zhang the investment would generate a return of 100 to 200 USDT within two days. He also said he would cover any losses incurred during that period. To ease Zhang’s concerns, Zhao claimed all of the money would be transferred to a public blockchain address.
$1,757 converted into Ether and transferred
Zhang believed him, converted the remaining $1,757 in his account into Ether, and completed the transfer using the wallet link Zhao provided. In fact, prosecutors said, the wallet tied to that link was not a public-chain address. It was a personal account Zhao had registered using his girlfriend’s identity information.
After the agreed repayment date passed, Zhao did not honor his promise. When Zhang repeatedly asked for the money back, Zhao responded with explanations including that the wrong link had been used and that more time was needed to trace the transfer.
Police report and prosecution
On Sept. 7 of the same year, Zhang noticed something was wrong and reported the case to police. On April 2 this year, the Pingba District People’s Procuratorate filed a public prosecution against Zhao on suspicion of fraud.
Prosecutors said Zhao obtained another person’s property by concealing the truth, and that the amount involved was relatively large, making his conduct a criminal fraud offense. They also said Zhao truthfully confessed after being brought in, fully compensated the victim for the losses, and voluntarily pleaded guilty and accepted punishment, which allowed a lighter sentence under the law.