Web3 studios in China providing liquidity services for cryptocurrency projects are facing significant legal risks, according to an analysis by lawyer Shao Shiwei. Despite regulatory bans on ICOs and virtual currency transactions, these studios continue to operate, often engaging in activities such as fake liquidity generation and wash trading. Such practices could lead to criminal charges, including fraud and illegal fundraising. The analysis highlights that these operations are part of a broader market manipulation strategy, particularly prevalent in the Meme coin sector. As regulatory scrutiny intensifies and blockchain analytics become more sophisticated, the legal consequences for these activities are expected to become more severe, posing increased risks for both the studios and their employees.