#Gate广场四月发帖挑战 Five countries jointly crack down! The world's largest metaverse coin crashes, 80k accounts frozen overnight, a staggering scam behind 97% decline

Latest news on April 7: Japan’s Financial Services Agency, the Monetary Authority of Singapore, Germany’s Federal Financial Supervisory Authority, the Canadian Securities Administrators, and the Central Bank of Brazil issued a joint statement today, officially classifying SpaceChain Coin (SPC) as a "cross-border illegal fundraising tool," and launching a global asset recovery operation. As of press time, the project’s token price plummeted 97.8%, from a high of $37 to $0.81, 83k investor accounts frozen, involving over $4.2 billion. This scam, marketed as a "metaverse infrastructure revolution," has been exposed under regulatory crackdown.

Regulatory raid: Five countries join forces, freezing 80k accounts overnight

Late night on April 6, regulatory agencies from five countries synchronized their actions, launching a "global crackdown" on SpaceChain Coin:

Japan: froze 12k domestic investor accounts, involving $680 million

Singapore: sealed the project headquarters, arrested 3 core members, froze $2.1 billion in assets

Germany: shut down 23 fake "space mining machine" leasing websites, involving $370 million

Canada: froze SPC trading pairs on cryptocurrency exchanges, restricted fund transfers

Brazil: intercepted $320 million in cross-border illegal funds, froze 15k investor accounts

The joint announcement pointed out that SpaceChain Coin, through fictitious "metaverse satellite networks" and "space mining machine leasing" businesses, attracted funds from unspecified individuals worldwide with a minimum investment of $50k, promising a fixed monthly return of 15-20%. Its operation mode fully meets the three major characteristics of illegal fundraising: unlicensed, promise of high returns, and fundraising from unspecified targets.

Scam packaging: From "space blockchain" to "metaverse infrastructure leader"

Founded in 2017, SpaceChain initially claimed to be "blockchain + space technology," aiming to launch 72 micro-satellites to build a decentralized space network. After shifting to the metaverse concept in 2025, it began fabricating the myth of being a "metaverse infrastructure leader":

1. Fake technical endorsement: claimed cooperation with NASA and ESA, holding patents for "space mining machines" capable of performing blockchain computations on satellites to produce SPC tokens

2. High-threshold temptation: set up a "space mining machine leasing plan" with a minimum investment of $50k, dividing investors into "Bronze," "Silver," and "Gold" tiers, with higher tiers offering more attractive returns

3. Wealth myth marketing: posted false cases on social media claiming "investors break even in 3 months" and "assets triple in half a year," hired influencers to create a "space mining wealth explosion" persona

4. Fund pyramid scheme: new investors' funds used to pay returns to old investors, with project operators taking 30% as "technical service fees," a typical Ponzi operation

Trigger for collapse: German hackers expose shocking evidence of fraud

The scam was exposed on March 15 by an anonymous German hacker group called "Data Justice Alliance." They released internal emails and financial records of SpaceChain, revealing three core fabrications:

1. Satellite fraud: the claim of "three blockchain satellites launched" is false; only one failed satellite deployment experiment occurred in 2021, with no blockchain functions realized

2. Mining machine scam: "space mining machines" are actually ordinary servers; the so-called "space computations" are fake programs run in ground data centers. The $50k investment only rents an ordinary server worth $800 for a year

3. Funds misappropriation: of the $4.2 billion raised, only 5% was used for technical R&D; the remaining 95% was transferred to anonymous accounts in tax havens like the Cayman Islands and Bermuda. The project founder spent over $1.2 billion on luxury homes and private jets

After the revelation, SPC’s price plummeted 40% that day, triggering panic selling among investors and prompting joint investigations by regulators from five countries.

Investors’ tears: from dreams of wealth to total loss

Among the 83k investors, 42% are from Asia, including high-net-worth individuals and professional investors. A Singaporean investor revealed he mortgaged his property to invest $2 million, now his account is frozen, facing homelessness. More painfully, many retirees invested their life savings hoping to secure their retirement through "space mining machines."

“They said this is the future of the metaverse, a technology that can change the world. I saved up 800k SGD my whole life and invested it, now I have nothing,” sobbed a 62-year-old retired teacher from Singapore.

Regulators remind investors to submit loss reports through official channels, but considering most funds have already been transferred, the recoverable proportion may be less than 10%.

Regulatory storm intensifies: a global crackdown on virtual currencies begins

This joint action is not accidental but part of a coordinated effort by global regulators to address chaos in the virtual currency space:

1. China regulation: In February 2026, the People’s Bank of China and eight other departments jointly issued a notice clarifying that virtual currency-related activities are illegal financial activities, banning all domestic virtual currency trading and exchanges

2. EU regulation: Starting April 1, the Markets in Crypto-Assets Regulation (MiCA) officially took effect, requiring all crypto service providers to obtain licenses and strictly enforce anti-money laundering and investor protection rules

3. US action: On April 1, the U.S. Department of the Treasury released a report emphasizing increased efforts to combat illegal financial activities involving digital assets, focusing on money laundering and illegal fundraising using virtual currencies

It’s noteworthy that regulators from these five countries particularly emphasized that the SpaceChain Coin scam exposes the risks of the metaverse concept being misused. They warn investors: any "metaverse investment" promising fixed high returns is 99% a scam.

Scam identification guide: Avoid virtual currency investment traps

In the face of frequent virtual currency scams, ordinary investors should remember these four points:

1. Beware of "high return promises": fixed annualized returns over 10% are highly likely to be Ponzi schemes; there are no guaranteed profitable investments in financial markets

2. Reject "black box technology": steer clear of projects that use vague concepts like "space technology," "quantum computing," or "metaverse infrastructure" without disclosing core technical details

3. Verify regulatory credentials: any legitimate financial product must be licensed by the financial regulatory authority of its country; avoid unlicensed projects

4. Stay away from "multi-level marketing" schemes: projects requiring recruitment of downlines and tiered rebates are essentially pyramid schemes; do not participate

When the metaverse bubble bursts, only the unwary are left exposed

When space dreams become a cover for illegal fundraising, and the metaverse concept turns into a scythe for harvesting investors’ funds, we finally realize: true value will never be built on lies, and real wealth has no shortcuts.

Virtual currencies are not monsters, but when used to fabricate scams and plunder wealth, they must be punished by law. The SpaceChain crash is a stark warning to all investors—on the road to wealth, maintaining integrity is more important than chasing returns.

Is your investment safe?

Have you encountered similar virtual currency traps? What are your thoughts on the metaverse concept? Share your experiences and opinions in the comments to help more people see the truth and stay away from scams.

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