Shanghai’s first use of virtual currency to implement network pyramid selling crime solved


Source: China News Service, Shanghai, March 15 (reporter Li Shuzheng) accumulated the development of more than 60,000 member accounts, hierarchical relationship up to 72 layers, involving more than 100 million yuan (RMB, the same below)…Shanghai public Security Bureau held a press conference on Thursday to reveal the city’s first online pyramid scheme crime involving the use of virtual currency.After six months of intensive investigation, Shanghai police rounded up more than 10 suspects in Beijing, Shanghai, Hainan, Shaanxi and Sichuan provinces, police said.Shanghai Municipal Public Security Bureau economic Investigation Team and Yangpu Public Security Bureau set up a joint task force investigation found that a network platform was set up in June 2020, the server was set up abroad, by the suspect Mou actual control.Mou mou through the establishment of a block chain technology company, the internal formation of technology, lecturer, promotion, customer service, withdrawal audit and other 5 teams, through the platform to promote block chain technology and provide virtual currency value-added services as the name, to promise high static income and development of the line double pay as bait, to attract users to join.To do so, members buy large amounts of virtual currency and convert them into so-called tokens issued by the platform to pay an entry fee to become a member.At the same time, the platform set up a variety of direct promotion award, inter-promotion award and other dynamic income and team income and other rebate awards, to induce members to develop offline, thus continuously expanding the scale of the organization.Zhao Shuai, chief inspector of the fourth branch of the Economic investigation Team of the Shanghai Public Security Bureau, said on The same day, “The platform has accumulated more than 60,000 member accounts during its existence, with 72 layers of hierarchical relationships, involving more than 100 million yuan.”According to police, the tokens set up by the platform have no market value and are illegal, and the value of the tokens is mostly controlled by the platform.In order to gain the trust of users, Mou organized Zhou and other 5 data lecturers to form a propaganda team, through online courses, offline propaganda and other forms, hyped the so-called blockchain technology and virtual currency appreciation prospects.At the same time, the platform establishes a publicity and promotion team to attract potential users to pay membership fees and induce them to continuously develop new members to join by organizing offline wine parties, community promotion and setting up group chats.According to the reporter, Shanghai police have requested the Ministry of Public Security to launch a nationwide “cloud operation” to crack down on suspected pyramid scheme participants across the province.(after)

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