Imagine thinking you’ve found a promising investment app run by a friendly woman offering 15% returns, only to discover it was part of an elaborate scam run out of another country. That’sexactly what happened to tens of thousands of people across India with this crypto investment scam.
In a case that’s as global as it is grim, a Chinese court has sentenced nine people for running a crypto-linked scam that defrauded over 66,000 Indian citizens out of nearly ₹52 crore (around $6.2 million). The ringleader? A man known only by his surname “He,” who kicked things off in May 2023 from the city of Heze in Shandong province.
Nine individuals were sentenced to prison terms in China along with fines for involving in a telecommunication fraud scheme targeting Indian victims. The scam siphoned 517 million Indian rupees ($6.2 million) from 66,800 victims through fabricated investment platforms and… pic.twitter.com/9mtgJHKqKS
Their scam centered around a bogus investment app called SENEE. The twist? The scammers posed as wealthy Indian women online, think fake profiles, photos of designer handbags, and smooth-talking texts promising big monthly returns on small investments. Just ₹1,000 could supposedly earn you an 8–15% return. Too good to be true? Yep, and it was.
Once people started investing larger amounts, the app locked them out or converted their deposits into “equity” they couldn’t access. In other words, goodbye money.
Money Laundering via Cryptocurrency
And it didn’t stop at just collecting funds. The group knew how to move dirty money.
Once the victims were fleeced, the scammers laundered the funds through third-party services, then converted the cash into Tether (USDT), a popular stablecoin in crypto circles. From there, it was either cashed out in yuan or U.S. dollars. The fraudsters allegedly kept a 15% cut per transaction, not exactly subtle.
In court, the prosecution laid out just how organized the ring was. Thiswasn’t a casual side hustle but a full-on criminal operation with job roles, task assignments, and profit splits. Everyone had a part to play.
The result? Prison sentences range from 5 years to nearly 15, plus fines. The presiding judge, Liu Xilei, made it clear that China is not taking this lightly. He also encouraged anyone involved in similar fraud to turn themselves in before the law catches up.
This case isn’t just about a group of scammers. It’s a warning sign about how sophisticated international crypto fraud has become and how hard it is to stop when the victims and the perpetrators are in completely different countries.
In India, scams like this one have prompted government crackdowns. Efforts like the Sanchar Saathi initiative have already disconnected millions of suspicious mobile numbers and blacklisted dodgy devices. It’s a game of digital whack-a-mole, but it’s a start.
The fact that this crew was tracked down and convicted shows progress. But the global nature of crypto scams makes enforcement tough. For now, the best defense is education — and knowing that if something online looks too good to be true, it probably is.
A Chinese fraud ring was sentenced for running a $6.2M crypto scam that targeted over 66,800 Indian citizens through a fake investment app called SENEE.
Scammers posed as wealthy Indian women online, offering 8–15% monthly returns to lure victims into depositing money.
Funds were laundered through third-party services and converted into Tether (USDT), then withdrawn as yuan or U.S. dollars.
The ringleader and eight others received prison sentences ranging from 5 to nearly 15 years, with additional fines imposed.
The case highlights the rise of international crypto scams and the growing need for cross-border enforcement and digital literacy.
Michigan’s new bills ban CBDC, permit state to invest in ‘crypto’
Michigan has become the latest U.S. state to push digital asset regulations, with four new bills landing in the State Senate to promote BTC mining and ban the looming digital dollar.
With House Bill 4510, the Great Lakes State seeks to pave the way for the state treasurer to invest in digital assets. Introduced by Bill Schuette, the Republican State Rep. for the 95th district, the new bill amends the state’s retirement system investment laws to allow investment in digital assets. However, it limits investment to assets that have averaged a market cap of at least $250 billion over the past calendar year.
The bill also outlines that the state can only hold digital assets as exchange-traded products issued by registered companies. This stipulation comes at a time when spot ETFs have exploded in the U.S. and now hold over $50 billion in assets.
Michigan’s Bureau of Investment, which the state treasurer oversees, held $165 billion by the end of 2024, most of which is from the public retirement systems.
Michigan joins dozens of states racing to implement digital asset reserves in response to a similar push at the federal level by President Donald Trump. In February, two State Senators introduced a bill allowing the Michigan state government to establish a BTC reserve. It limited the investment to 10% of the assets, which would be around $17 billion by the latest figures.
Michigan bans the digital dollar
In the second proposed bill, House Bill 4511, the state seeks to ban the digital dollar, again aligning with Trump’s position against the proposed sovereign digital currency.
The bill “prohibits the advocacy or support through certain actions by certain state governmental officers and entities of a central bank digital currency by the United States government.”
Introduced by Republican Rep. Bryan Posthumus, the bill mirrors dozens of others across the U.S. that have sought to halt any prospective digital dollar at the state level. The earliest opposition came from Florida, where Gov. Ron DeSantis led anti-CBDC campaigns years before Trump’s election.
While several states have advanced bills resisting the digital dollar, the central bank digital currency (CBDC) is unlikely to see the light of day under the Trump presidency. Upon retaking office earlier this year, Trump signed an executive order prohibiting the Fed from launching a CBDC, which he argued “threatens the stability of the financial system.”
Beyond the CBDC, the same bill also prohibits Michigan from banning digital assets or denying licenses to holders. The state must also not prohibit the operation of blockchain nodes or participation in staking.
The other two bills, House Bill 4512 and House Bill 4513, focus on block reward mining. The first will permit the revival of abandoned oil and gas wells to mine BTC, and the second will expand the tax laws to accommodate income from such mining activities. The miners would shoulder the costs of well restoration, with the State’s Supervisor of Wells having jurisdiction over the sector.
The block reward mining bills come amid a rise in anti-mining campaigns across the U.S. and beyond by local communities. In dozens of ongoing lawsuits, these communities have accused miners of noise pollution, which they say is pushing them away from their homes.
Russia pushes miners to the north amid power shortages
Meanwhile, in Russia, the Ministry of Energy plans to push BTC miners to the northern regions as it navigates power shortages in the more densely populated eastern and southern regions.
In an interview with state-owned news agency TASS, Deputy Minister Yevgeny Grabchak revealed that the government intends to incentivize miners to relocate to the north. Russia’s north is the least populated region, with harsh weather—especially its severe winters—mostly to blame. However, the region also has the most abundant natural resources, including oil and gas.
“[The north] is where we can think about something with miners, put them there and consider the possibility of a network tariff. But this is not a benefit as such, but a different principle of tariff formation,” the minister stated.
In particular, the ministry intends to relocate the miners to power grid centers whose capacity was previously used to mine oil.
Repurposing unused or excess electricity to mine digital assets is becoming common globally. The U.S., Pakistan, Japan and Germany are among the countries that have announced new initiatives to leverage the surplus capacity to mine BTC.
Watch: Finding ways to use CBDC outside of digital currencies
This content is provided by a sponsor. PRESS RELEASE. Victoria, Seychelles, 29th May, 2025 – Bitget, the leading cryptocurrency exchange and Web3 company, has announced the listing of Ripple USD (RLUSD) on its spot trading platform. RLUSD, an enterprise-grade USD-backed stablecoin issued by Ripple, enters the Bitget ecosystem at a time when demand for secure […]
What Is Tokenizing Luxury Assets and How Does It Work?
Blockchain technology and DeFi are transforming industries, with luxury asset tokenization emerging as a key innovation. From high-end real estate and rare artworks to luxury cars, yachts, and designer watches, the digital transformation of ownership is opening new doors to investment, accessibility, and liquidity. But what exactly does tokenizing luxury assets mean, and how does it work? This blog explores the concept, mechanics, benefits, challenges, and real-world examples of tokenization of luxury assets, helping you understand how this technology is revolutionizing high-value markets.
What Is Tokenizing Luxury Assets?
Tokenization of luxury assets means converting valuable physical goods into tradable digital tokens using blockchain technology. These tokens represent shares or fractions of the actual asset, allowing multiple individuals to co-own a luxury item without physically possessing it.
For example, A $10 million rare painting can be divided into 1 million digital tokens, with each token representing a $10 share in the artwork. Buyers can purchase as many tokens as they want, effectively owning a piece of the luxury item.
The key idea is that Luxury Asset Tokenization makes expensive and often illiquid items accessible, tradable, and divisible, empowering more people to invest in high-end markets.
How Does Tokenization of Luxury Assets Work?
The process of tokenizing luxury assets blends legal frameworks, financial structures, and blockchain technology. Here’s a breakdown of how it works:
1. Asset Identification and Valuation First, the luxury asset is identified and appraised. This step ensures the item (such as a luxury villa, a rare diamond, or an antique car) has verifiable value and authenticity.
2. Legal Structuring The asset is typically placed under a legal entity such as a trust or special purpose vehicle (SPV), which will hold the asset on behalf of the token holders. This ensures that token owners have a legitimate claim to the asset or its financial value.
3. Token Creation Using blockchain technology, digital tokens are created that represent shares of the luxury asset. These tokens can follow standards like ERC-20 or ERC-721, depending on whether the tokens are fungible or non-fungible.
4. Regulatory Compliance To avoid legal complications, the token issuance process must comply with jurisdictional regulations, including securities laws, KYC (Know Your Customer), and AML (Anti-Money Laundering) requirements.
5. Token Sale or Distribution Tokens are sold to investors through platforms or marketplaces. This can be done via Security Token Offerings (STOs), private placements, or crowdfunding campaigns.
6. Trading and Ownership After the initial sale, tokens can be traded on digital asset exchanges, giving owners liquidity and enabling the free flow of ownership rights. Blockchain ensures transparent, immutable transaction records.
Why Tokenizing Luxury Assets Is a Game Changer?
Fractional Ownership Perhaps the biggest advantage of luxury asset tokenization is fractional ownership. Buyers can invest in high-value assets without needing millions of dollars upfront. For example, a collector can own a part of a Picasso rather than the entire painting.
Increased Liquidity Luxury items are traditionally illiquid. It can take months or even years to sell them. Tokenization makes these assets tradable on digital exchanges, drastically improving liquidity.
Global Accessibility Blockchain removes geographical barriers, allowing global investors to participate in markets they previously couldn’t access due to cost or location.
Transparency and Security Blockchain offers immutable records, reducing the risk of fraud. Ownership history and asset data are securely recorded, improving trust and accountability.
Faster Transactions Blockchain-enabled smart contracts automate and speed up the buying, selling, and transferring of tokenized assets.
Real-World Examples of Luxury Asset Tokenization
Art Companies like Masterworks have made headlines by tokenizing fine art from artists like Banksy and Monet. The tokens are distributed to investors who gain returns through appreciation or when the asset is sold.
Real Estate Luxury villas, condos, and even hotel suites in prime locations are being tokenized. Investors can own a piece of a $5M beachfront property without buying the whole property.
Luxury Cars Rare classic cars and exotic vehicles such as Ferraris and Lamborghinis are being fractionalized through platforms offering shares in collectible automobiles.
Jewelry and Watches Tokenization allows investors to own fractions of valuable diamonds or limited-edition Rolex watches, tracked and secured via blockchain.
Yachts and Jets Some firms are offering tokens that represent partial ownership or usage rights in luxury yachts and private jets.
Key Technologies Behind Luxury Asset Tokenization
Blockchain Networks Asset tokenization commonly relies on Ethereum because of its advanced smart contract capabilities. Other chains like Polygon, Solana, and Avalanche are also being explored for scalability and cost-effectiveness.
Smart Contracts Smart contracts automate key processes such as token issuance, dividend distribution, and ownership transfer, reducing the need for intermediaries.
Digital Marketplaces Platforms such as Securitize, tZERO, and RealT are helping bridge the gap between physical assets and digital investors.
Custody Solutions Regulated custodians ensure the physical asset is safely stored and managed, while token holders have peace of mind regarding their investment.
Challenges in Tokenizing Luxury Assets
While the potential of tokenizing luxury assets is massive, there are still some challenges to consider:
Legal and Regulatory Issues Different countries have varying regulations concerning securities, property rights, and digital assets. Navigating this landscape can be complex and costly.
Custodianship Physical luxury items need secure, insured, and credible custodians. Trust is essential for buyers who may never physically see the item they’ve invested in.
Market Volatility The token value may fluctuate based on market trends, demand, and the perceived value of the asset. This can affect investor confidence.
Technical Barriers Developing a secure, scalable, and user-friendly tokenization platform requires significant technical expertise and capital.
Who Can Benefit from Tokenization of Luxury Assets?
High-Net-Worth Individuals (HNWIs) They can diversify their portfolios by investing in tokenized luxury items with less capital locked up per asset.
Collectors and Creators Artists, designers, and luxury item creators can raise capital or monetize their creations through fractional ownership.
Asset Managers and Real Estate Developers They can expand their investor base globally, reduce capital barriers, and bring liquidity to traditionally illiquid assets.
The Future of Tokenizing Luxury Assets
The adoption of luxury asset tokenization is still in its early stages, but it is gaining momentum. As regulatory clarity improves, and blockchain infrastructure becomes more robust, tokenization will likely become a standard investment method for luxury markets.
The next few years will likely bring:
✦Greater institutional interest ✦Government-regulated tokenization platforms ✦Expansion into new luxury verticals (wines, fashion, private memberships) ✦Improved interoperability between token standards and blockchains ✦Enhanced investor protections and governance models
Conclusion
Tokenizing luxury assets is transforming how we think about wealth, ownership, and investment. By leveraging blockchain technology, luxury items once reserved for the elite can now be fractionally owned, traded, and accessed by a global investor base.
Whether you’re an investor looking to diversify into high-end assets, a luxury brand exploring new monetization methods, or a tech entrepreneur building tokenization solutions — the tokenization of luxury assets offers unprecedented opportunities.
As the ecosystem matures, luxury asset tokenization will continue to redefine the boundaries of investment, ownership, and accessibility in the luxury world.