China Warns About DeepSeek Crypto Scams Targeting Investors

Chinese authorities have warned about a criminal group that defrauded investors by posing as developers of a DeepSeek blockchain project.

The scammers falsely claimed their platform was built using DeepSeek technology, promoting it as a secure and efficient investment opportunity.

DeepSeek Crypto Scams Are Targeting Chinese Users

DeepSeek gained attention in January after its artificial intelligence model reportedly matched OpenAI’s performance on specific benchmarks at a lower cost.

According to the Chinese government, this hype attracted investors eager to capitalize on its potential. Fraudsters exploited this momentum, launching crowdfunding campaigns before vanishing with the funds.

The authorities revealed that victims were misled into thinking they could make over 10,000 yuan ($1,373) per month using DeepSeek.

The Scammers sold a tutorial for 39.9 yuan ($5.5), claiming it would teach users how to write viral content. However, only four out of 104 pages contained relevant material, while the rest was publicly available information.

In another scheme, fraudsters set up fake “monetization training camps,” charging between 299 yuan ($41) and 399 yuan ($55) for courses that turned out to be worthless.

The deception extended further when scammers created fake DeepSeek communities, presenting them as official groups.

They promoted “internal test qualifications” and “advanced courses,” later introducing DeepSeekCoin—a fake cryptocurrency they claimed had strong technical backing. This lured investors who eventually lost all their funds.

In January, DeepSeek distanced itself from crypto tokens which falsely associated with its name.

“DeepSeek has not issued any cryptocurrency. Currently, there is only one official account on the Twitter platform. We will not contact anyone through other accounts,” the project stated.

Fake DeepSeek Apps Spreading Malware

Beyond financial fraud, authorities have raised concerns about a rise in fake DeepSeek applications embedded with malware.

According to the authorities, cybercriminals have been distributing malicious software disguised as DeepSeek apps under various names, including DeepSeek.apk, DeepSeek.exe, DeepSeek.msi, and DeepSeek.dmg. These applications pose serious security risks and compromise users’ private data.

Once installed, these fake apps prompt users to download an update embedded with harmful code. The malware then accesses system features, allowing it to steal sensitive information such as contacts and messages.

In some cases, the malicious code prevents users from uninstalling the app, making it difficult to remove.

The authorities warn that as artificial intelligence applications like DeepSeek become more popular, similar scams will likely increase.

“It is expected that in the future, virus Trojans of various artificial intelligence applications, including impersonation of DeepSeek, will increase,” the Chinese authorities stated.

So, users are advised to verify sources before engaging with AI-related investment opportunities and to remain cautious of suspicious applications that may pose security threats.

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