Who would go to a fake exchange to trade contracts?

Last night I had dinner with a lawyer friend, and I heard that recently several people have been consulting about whether they can file a case for contract losses. These people want to use RMB to exchange for USDT to make contract bets on price increases or decreases, and the end result is that they gradually get liquidated, and their principal is quickly gone, with tens of thousands or even hundreds of thousands being quite common. There are also some who provide tips, teaching you how to incur contract losses, etc.

Today, I will explain under what circumstances contract losses fall within the scope of criminal case filing, which can be reported to the public security organs for recovery.

The first common scenario occurs at large exchanges. For example, if you are trading contracts to short or go long on Bitcoin, Dogecoin, etc., at a certain exchange, losses incurred from guessing the wrong direction are considered risk-bearing behavior, and the losses are self-responsible and do not constitute a crime.

The second scenario involves a so-called expert you met online, who teaches you how to trade contracts with guaranteed profits and then directs you to a third-party unregulated exchange. At this unregulated exchange, you exchange USDT for their platform token, and the contract's cryptocurrency is often a worthless token. If you encounter situations like a 'heaven and earth needle', you are likely dealing with a scam. This type can be reported to public security organs for case filing, as it falls within the scope of criminal cases involving fraud, and many have successfully led to criminal cases being filed by the public security organs.

Therefore, the key to contract losses is whether it is due to data manipulation by human back-end operations or market conditions leading to liquidation. Some exchanges are clearly unregulated, and the tokens involved are often worthless, with high leverage, making it evident that it is a scam.