Shanghai No. 1 Intermediate Court concludes criminal case involving digital collections: transfer platform should handle business license according to law

According to the official account of the Shanghai No. 1 Intermediate People's Court (Shanghai No. 1 Intermediate Court), the court recently concluded a 2nd-round Moderation criminal case involving digital collections. The defendant Wang and others "uploaded" the digital collection generated by AI drawing of the underlying electronic pictures through a third-party blockchain company, using fraudulent methods to illegally raise funds, and the amount was huge. Therefore, the defendant Wang was sentenced to eight years and six months in prison and fined 550,000 yuan for the crime of fund-raising fraud.
The presiding judge of 2nd-round Moderation in this case, Gu Pingzhou, pointed out that most of the digital collection transfer platforms currently existing in the market are formed spontaneously by users, or trading venues for illegal organizations of some small and medium-sized platforms. For platform operators, before engaging in a certain business activity, they should verify their access qualifications with relevant regulatory authorities and industry associations, and apply for business licenses according to law.