According to ChainCatcher, the Beijing Municipal Public Security Bureau Economic Crime Investigation Team announced that the police recently cracked down on a group that organized and led pyramid schemes in the name of investing in virtual collections. The case involved more than 100 pyramid scheme participants and the amount involved was more than 2.8 million US dollars. The police reminded that any activity that requires "entry fees" in the name of investment, encourages recruiting people, and uses the number of people developed as the basis for remuneration is a disguised pyramid scheme. The general public should see through the essence of pyramid schemes and raise awareness of prevention.
According to police investigation, the pyramid scheme in the above case introduced the "rules of the game" to the public through on-site lectures and WeChat group messages, and attracted unspecified people to top up and purchase virtual collections in the name of investment, earning profits from it, causing property losses to many people. Through the combination and analysis of police reports from the entire city, the police believe that the investment project is suspected of organizing and leading pyramid schemes.
After verification, it was found that the organization has complete membership registration rules, and its dividend distribution model is divided into two types: dynamic and static. After the participants top up, they use virtual currency for settlement and obtain "static dividends". In addition, members can also obtain "dynamic dividends" by developing downlines, that is, "recruiting people".
The police reminded that some criminals have turned "digital collections" and "virtual currencies" into their own "wealth codes" and used digital economic concepts and technologies as a cover to engage in illegal fundraising and other criminal activities. They attract investment and defraud money by boasting, exaggerating their value or creating worthless "counterfeit currencies". The general public should be vigilant in their lives and never be deceived.
