Guizhou Man Sentenced to Prison Over Fraudulent Crypto Airdrop

A local court in the Pingba District of Anshun City, Guizhou, has sentenced a man to seven months in prison following a fraudulent scheme involving a fake virtual currency "airdrop project." The defendant, identified as Zhao, was also ordered to pay a fine of 5,000 yuan after he deceived a friend into transferring digital assets under the guise of a high-yield investment opportunity. This case highlights the growing legal scrutiny over peer-to-peer cryptocurrency interactions and the risks associated with social-media-based investment groups.

Deception via Social Media and Fake Airdrops

The incident began when Zhao, who frequently posted content regarding virtual currency investments on various social platforms, established a relationship with a fellow enthusiast named Zhang. Over time, Zhao cultivated Zhang's trust through their shared interest in the blockchain space. According to reports from Guizhou Chang'an Net, the two had previously engaged in joint investments. When Zhang expressed a desire to withdraw his funds after experiencing market losses, Zhao presented a deceptive recovery plan on August 23, 2025.

Zhao claimed that a specific application was launching an "airdrop project" that guaranteed a rebate of 100 to 200 U-coins (Tether/USDT) within a 48-hour window. To further entice the victim, Zhao falsely asserted that:

• Zhao would personally bear any potential financial losses.
• The funds would be securely transferred to a "public chain" for processing.
• The investment was a low-risk method to recoup previous trading deficits.

Misappropriation of Ethereum and Legal Consequences

Believing the fraudulent claims, Zhang converted his holdings into Ethereum (ETH) and transferred the assets via a link provided by Zhao. Investigation later revealed that the link was not connected to a legitimate airdrop or public blockchain protocol; instead, it was a portal created by Zhao using his girlfriend’s identity information to siphon the funds directly to himself. Airdrops are typically marketing events where blockchain projects distribute free tokens to wallet holders, but they are frequently mimicked by scammers to gain access to private keys or direct transfers.

The court found that Zhao's actions constituted criminal fraud, as he used fabricated information to misappropriate the victim's property. The sentence of seven months in prison and the accompanying 5,000 yuan fine reflect the judiciary's commitment to penalizing financial crimes within the digital asset sector.

The case serves as a cautionary tale for the cryptocurrency community regarding the dangers of "guaranteed return" schemes and the importance of verifying the legitimacy of smart contract links. Legal experts suggest that investors should remain skeptical of private investment offers made through social media, even when a prior relationship exists, as the decentralized nature of blockchain transactions often makes fund recovery difficult without law enforcement intervention.