#Bitcoin Ecosystem Projects Lock-up Fraud#

Recently, the issue of fake locked assets in the Bitcoin ecosystem has drawn attention. Yu Feng, founder of Nubit, pointed out that many BTCFi projects use offline pre-signed transactions to fake locked assets. This method does not truly lock Bitcoin on the mainnet, but rather inflates TVL through the illusion of "looking locked." Users can submit multiple pre-signed transactions using the same UTXO, allowing multiple protocols to count it as TVL, but in reality, this Bitcoin is not truly locked anywhere. This manipulation has led to a false inflation of TVL and serious trust issues. Yu Feng, the founder, proposed two solutions: one is to truly put the transaction on the chain, locking funds through Bitcoin script addresses; the other is to use zero-knowledge proof design, making the locking transparent and secure, avoiding double-spending risks. This fraudulent behavior not only harms user interests but also negatively impacts the credibility of the entire Bitcoin ecosystem. In the future, BTCFi projects need to take stricter measures to ensure the authenticity and security of locked assets, rebuild user trust, and promote the healthy development of the ecosystem.