Chinese Cryptocurrency Fitness App ‘Qubu’ Places Under Investigation For Illegal Fundraising Practices And Financial Fraud
Chinese Crypto Fitness App ‘Qubu’ Placed Under Investigation For Illegal Fundraising Practices And Financial Fraud
December 19, 2019
Chinese Cryptocurrency Fitness App ‘Qubu’ Places Under Investigation For Illegal Fundraising Practices And Financial Fraud
Chinese Crypto Fitness App ‘Qubu’ Placed Under Investigation For Illegal Fundraising Practices And Financial Fraud
December 19, 2019

Qubu, a Chinese cryptocurrency fitness app, has reportedly been placed under investigation for allegedly illegal fundraising practices and financial fraud.

On December 18, it has been reported by Nikkei Asian Review that the documents are ostensibly accessed by KrASIA, its affiliate publication.

According to the report, the market regulator in Changsha, the capital of Hunan province, is investigating a fitness app that promised to reward users with cryptocurrency “candies” in exchange for being active.

However, by clocking 4,000 steps a day for 45 days, users of the app could purportedly earn 15 candies, which could then be traded in for cash or used to unlock app features promising higher rewards.

Likewise, the candies were purportedly marketed as “wealth management instruments” with a lucrative offer of a 36.8% return over a 60 day period. The investment scheme urged users to recruit further app users “downline” to earn extra income.

It has been analyzed that Qubu purportedly claimed to have on-boarded 95 million registered users by December of this year.

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However, Nikkei notes this figure with suspicion by pointing to its implication that almost one in 10 mobile users across China would need to have been registered for this claim to be true.

Similarly, one investor told that he had spent 15,000 yuan ($2,150) through Qubu in expectation of seeing a solid return, yet was now in limbo in light of the regulator’s actions. 

It has also been analyzed that Qubu formerly based in Changsha has now allegedly claimed to have relocated to the southwestern Chinese municipality of Chongqing.

Thus, trading on Qubu’s in-app exchange reportedly carried transaction processing fees of as high as 25–50%.


Source: asia.nikkei.com | cointelegraph.com


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
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