A quick look at the popular cryptocurrency circles within 3 hours (from CoinsRadar.net):
The mantis stalks the cicada, but the oriole is behind? A review of the well-known cryptocurrency projects that have been cracked down by the domestic police
I. Introduction
Virtual currency crimes are not only cracked down in my country. Any country will crack down on illegal and criminal activities based on the interests of society and the people. When dealing with virtual currency issues, we cannot simply generalize and think that only my country cracks down on it and foreign countries freely support it. In fact, there is no absolute position, whether in China or other countries. A one-size-fits-all view is only a one-sided understanding of complex issues, a bit like a blind man touching an elephant. Therefore, we will deeply understand the measures taken by various countries to deal with classic and major virtual currency crime cases in their own countries, so that everyone can better understand the global governance status of virtual currency crimes.
II. Plus Token MLM Case (Yancheng, Jiangsu)
In 2017, domestic ICO ushered in the hottest first year, but it was also the last year of this carnival. The criminals involved in the case created Plus Token wallet under the guise of blockchain and continued to engage in pyramid selling. On May 1, 2018, the APP was officially launched and the highest marketing team, Shengshi Alliance Community, was established. Pyramid selling continued through WeChat groups, the Internet, irregular meetings, concerts, and travel. The project claimed to have a non-existent "smart dog moving bricks" function, requiring users to pay more than $500 worth of digital currency as an entry threshold before they can enjoy the benefits brought by the "smart dog". In addition, the membership system is divided into five levels: ordinary members, big households, big coffees, big gods, and creations, involving three types of returns such as smart moving bricks income, link income, and executive income, which constantly attract people to enter.
At the peak of the project, there were as many as 2.69 million registered users, and the agency level was as high as 4,000 layers! Participants were all over the world. What is shocking is that the so-called founder even imitated Sun Ge and participated in Buffett's dinner auction in an attempt to hype it up.
3. AOFEX Exchange Collapse (Xuzhou, Jiangsu)
For old players in the cryptocurrency circle, Aofex Exchange must be familiar to everyone. This is a "pure British" exchange that once claimed to have obtained the British virtual currency operation supervision qualification. However, such an "authentic old capitalist power" exchange suddenly could not log in on December 10, 2021. What happened?
It turns out that after the 924 notice was issued, exchanges began to be cleared out in China. For example, overseas exchanges such as Binance, Huobi, and Ouyi have begun to clear out and cancel Chinese KYC users even though their platforms are physically located abroad. However, there are still many exchanges, such as Aofex, which believes that it is among the top five in the world in terms of trading volume and disguises itself as a British exchange, so it can ignore Chinese policies. Not only are all its users basically from China, but its platform is also physically located in China, and even the relevant supervisors are suspected of multiple crimes such as money laundering, cover-up, and pyramid schemes. Therefore, after the Xuzhou police in Jiangsu Province got the clue that the exchange helped overseas fraudsters to launder money and illegally misappropriate platform users' funds, they immediately launched a network-closing operation, gradually controlled its responsible persons, and destroyed the "Chengdu Aofex Office", which is the office of its platform in China. (In fact, the company only has this one place, and the so-called British company is because the current fee for registering a company in the UK is 1,500 yuan/year, and it only needs to provide an ID card or passport to handle it.) Since there are many suspects in this case, and even other international regions are involved, the case is still under investigation. Of course, they will be greeted by the justice of the law.
IV. BTCST Case (Anqing, Anhui) As we all know, the way to generate cryptocurrencies represented by Bitcoin is through mining machines running specific programs. This process is called "mining", and the factor that determines the output of "mining" is the computing power of the mining machine, referred to as "computing power". However, mining has a certain threshold. In order to facilitate ordinary people to obtain the corresponding benefits of computing power without maintaining mining machines. In 2020, the people involved in the case issued such a "computing power coin" Btcst with computing power as the underlying asset. Even though its currency has never fallen below the issue price since its issuance, it was still convicted of illegal business operations at the beginning, and was later prosecuted for the crime of illegally absorbing public deposits with a lighter penalty.
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