China's Shanghai Court Analyzes Criminal Liability Findings in Electronic Fraud Cases Involving Virtual Currency Diversion: May Contain Complicity in Fraud Crimes or Crimes of Illegal Use of Information Networks

Comparing news, China's Shanghai Intermediate People's Court published a typical case law to analyze the examination and determination of whether drafters in virtual currency telecommunication network fraud cases constituted accomplices in fraud crimes. From February 2022 to April 2023, in order to obtain profits, the defendant used online virtual phone software to attract victims to join related fraud groups. In the end, 30 victims were defrauded of more than RMB 2.34 million by overseas fraud organizations (same currency). An overseas fraud organization transfers money to the suspect's trading account through virtual currency.

The Shanghai No. 1 Intermediate People's Court pointed out that in telecommunication network fraud cases, according to specific circumstances, the culprit may be complicit in the crime of fraud or the crime of illegal use of information networks. The key is to determine whether they have formed clear criminal contacts with upstream criminal fraud gangs and whether there is a stable cooperative division of labor. In judicial practice, when judging the criminal liability of drafters, factors such as their role in the criminal chain, degree of organizational management, links with upstream offenders, profit methods, and abnormal behavior should be comprehensively considered. Acts that only provide general network services and do not form a conspiracy to commit fraud should be distinguished from acts that are aware of and participate in the execution of fraud.