ChainCatcher reported that according to Jimu News, the Zhongxiang City Procuratorate of Hubei Province recently made a judgment on a major virtual currency pyramid scheme case. The main culprits Chen, Ding, and Fu were sentenced to three years in prison, suspended for five years, and fined 350,000 yuan each for organizing and leading pyramid schemes.
In February 2022, three main culprits developed and launched a virtual currency trading app, and established a pyramid scheme called "XXX Community" under the guise of investing in virtual currency. The organization promoted itself through Internet platforms and offline training sessions, inducing members to buy virtual currency and develop downlines. The organization is divided into five major war zones and 16 pioneer groups by region, and implements strict hierarchical management.
As of December 2022, when the case broke out, the organization had developed more than 10,000 member accounts, with the highest level reaching 17 levels, and the amount involved was as high as more than 57 million yuan. The three main offenders have voluntarily returned all illegal gains of more than 22.59 million yuan. The prosecutor emphasized that virtual currency does not have the same legal status as legal currency, and related business activities are illegal financial activities and will be strictly prohibited. The public should be vigilant, beware of false promises such as "guaranteed profit without loss", refuse high-interest temptations such as "recruiting people", and avoid falling into similar pyramid schemes.
