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After the Chinese AI startup DeepSeek announced that it had never issued its own token, reports emerged that the prices of 'fake DeepSeek tokens' plummeted.

Previously, DeepSeek had garnered industry attention last month by unveiling its AI model 'DeepSeek R1', developed using low-spec chips. Following this, fake tokens such as 'DeepSeek', 'DeepSeekAI', and 'DeepSeekR1' proliferated.

On the 9th, Chinese media Sina Finance reported, "After DeepSeek announced on the 6th that it had never officially issued any virtual assets (cryptocurrency), the prices of fake tokens plummeted to near zero." According to the media, up to 75 fake DeepSeek tokens have been issued so far, with fraud damages amounting to 420 million yuan (approximately 83.8 billion won).

In fact, on a decentralized exchange (DEX), a fake token called 'DeepSeek' was listed on the 5th and surged to a peak of $380 by the early hours of the 6th, only to crash to around $0.1 within a day.

The media added, "Issuing virtual assets in China is illegal," and "individuals or companies issuing virtual assets can face severe legal penalties." The Shanghai High Court ruled last November that fundraising through the issuance of virtual assets is illegal and can be considered financial fraud and illegal fundraising.