The Cyber Security Bureau of the Ministry of Public Security of China released a case saying that the network security in Qiannan, Guizhou Province, was linked with economic investigation to crack a "virtual currency" online pyramid scheme case. The task force went to many places and successfully arrested 15 alleged offenders.
After investigation, the MLM organization promoted the slogan "All valuable things in the world can be tokenized", built a virtual currency trading platform without real names, and established various levels. Members participated in MLM activities by recharging and pledging virtual coins, and profited by developing offline to obtain direct rewards. It is an online MLM organization with a level of more than three levels and thousands of participants.
Criminals set up a virtual currency on the network, using the purchase of virtual coins to obtain high profits as bait, deliberately inflating the price of virtual coins, and dividing the "status hierarchy" according to the purchase amount of members. As the hierarchy continues to rise, the income increases, in order to encourage "old members" to continue to develop "new members", attract more personnel to participate in pyramid schemes, and achieve profit rebates at various levels.
China's Guizhou Internet police crack a crime involving "virtual currency"
2025-12-18 01:32:23
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