A pyramid scheme organization using “virtual currency” as a gimmick was prosecuted and sentenced. The amount involved was over 210 million yuan

According to the official account of the Yunnan Provincial People's Procuratorate, according to the official account of the Yunnan Provincial People's Procuratorate, the case recently filed by the Shidian County Procuratorate for organizing and leading pyramid scheme activities was tried by the court. The 10 defendants, including Li, were each sentenced to 6 years in prison to 2 years in prison for the crime of organizing and leading pyramid scheme activities, and fines ranged from RMB 500,000 to 100,000 yuan.

Since May 2021, Mr. Li has collected Mr. Huang, Mr. Jin, and others to use “blockchain” and “virtual currency” as a gimmick to obtain illegal benefits, set up 5 capital pools on the online platform on the grounds of buying and holding virtual digital coins A and issuing virtual digital coins B and C, and use on-site meetings, WeChat groups, etc. to create the personality of successful people, and use their special professional background to promote slogans such as “One Dollar, One Luxury Home, One Dollar, One Luxury Car” and “Easily Earn Hundreds of Thousands of Millions a Day” Reward systems and profit prospects tempt the masses By purchasing, destroying, and adding funds to the pool, you are eligible to join, complete the tasks issued, and receive static dividends and dynamic returns directly or indirectly based on the number of people developed and the amount invested, forming 5 rebate tiers.

According to an assessment, the total amount of MLM funds collected by Mr. Li and others using online platforms amounted to more than RMB 210 million. The investigation by the Shidian County Procuratorate found that Mr. Li, along with nine other defendants, used online platforms to defraud property and disrupt the economic and social order. The total amount of pyramid scheme funds reached more than 210 million yuan. The circumstances were serious. The actions of Mr. Li and 10 others violated the provisions of Article 224 (1) of the Criminal Law of the People's Republic of China and constituted the crime of organizing and leading pyramid scheme activities. Following a court hearing, the above judgment was handed down.