Major exchanges exploit regulatory gaps by offering leveraged demo accounts to Chinese students, reviving concerns reminiscent of historical debt trap scandals.Binance and OKX face allegations of promoting 100x leveraged 'educational' crypto accounts to STEM students despite China's 2021 trading ban, with 18% of surveyed Tsinghua University participants admitting engagement.Platforms Exploit Regulatory Gray ZonesChina's National Financial Regulatory Administration identified 12 crypto entities on 15 June 2024 operating simulated trading programs violating the nation's crypto ban. ETHPanda co-founder Li Wei stated: 'These demo accounts function as psychological traps - students see paper profits but face real debts when positions liquidate.'Academic Partnerships Enable TargetingTsinghua University's 19 June survey revealed 30% of participants didn't understand trial funds couldn't be withdrawn. BlockBeats' editorial noted partnerships with coding clubs and hackathons help position platforms as 'innovation allies' rather than financial predators.Enforcement Challenges PersistWhile Hong Kong proposed stricter KYC rules on 21 June, mainland regulators struggle with decentralized platforms. The PBOC's 18 June statement admitted tracking peer-to-peer crypto transactions remains technologically challenging compared to traditional banking oversight.Historical Parallels to P2P Lending CrisisThe current situation mirrors China's 2016-2018 peer-to-peer lending collapse where 70% of platforms failed, affecting 50 million investors. However, crypto's borderless nature complicates asset recovery - only 12% of student debt cases reported this year involved traceable fiat transactions.Mobile Payment Precedent Shows Regulatory PotentialChina's 2017 crackdown on QR code lending apps reduced youth debt defaults by 40% within 18 months through real-name verification mandates. Experts suggest similar measures could apply to crypto platforms, though decentralized protocols may require novel technical solutions. https://redrobot.online/2025/05/predatory-crypto-practices-target-chinese-students-through-high-risk-trial-funds/