Invest in virtual currency to get rich? No, it's a scam! (From Coinsradar.net)

"The country has no clear regulations on virtual currency. Individual buying and selling is a citizen's investment freedom and legal. I don't think I have violated the law."

Recently, Huishui Court tried a case of organizing and leading pyramid selling activities. The defendants Wang and Zhang were sentenced to three years in prison, suspended for four years, and fined 50,000 yuan.

In March 2023, Wang and Zhang, who were "cut leeks" in the virtual currency "NFD" token and failed in investment, contacted many virtual currency players to discuss a new virtual currency project "Crypto Oasis Legend" (EOL). Wang publicly stood on the platform with his real name, and Zhang was responsible for offline publicity and promotion.

Under Zhang's arrangement, Shen recruited technical developer Tang to draft the contract mechanism of the "Crypto Oasis EOL" virtual currency project, complete the project development and improve operational support. On March 6, 2023, many virtual currency players participated in the private placement of the project, the public offering was opened on March 8, and the project was officially launched on March 20.

After the launch, Wang and Zhang invited Tang, Chen, Qian and others to give away "EOL" coins at offline cocktail parties, reimburse travel expenses, and teach online and offline courses, claiming that the virtual currency can rise to more than 1U within 45 days. They also set up a variety of incentive mechanisms such as 5% referral rewards and team dividends to lure investors to buy.

An participated in the investment in the virtual currency of Milu Oasis EOL under the contact of his friend Chen.

An: "Chen brainwashed me and said that 'EOL' coin is a valuable platform with ecological applications. The founder publicly stands on the platform and creates a clear stream in the coin circle. The contract is clean and there is no insider trading. The founder is upright and righteous. It is very valuable and worth investing. I also want to make some money by buying low and selling high at the beginning, so I used his referral code to buy 500U of EOL coins, about 4,000 coins. At that time, I also joined the EOL video conference to listen to the lecturer's lecture. I thought it was okay, so I kept it in my mobile phone and didn't sell it. Since then, it has become worthless. I feel cheated." Liu: "I was also invited by a friend to invest in the virtual currency of Crypto Oasis EOL. I found out that the initiators of the 'EOL' project were Zhang and Wang by attending an offline hotel meeting. The project set an entry fee and a rebate for recruiting people to develop downlines. It conducted marketing and publicity through online Tencent meetings and offline cocktail parties.”

After his friend was arrested by the police, Liu realized that the "EOL" project was suspected of committing a crime and regretted it.

"I found a pyramid scheme gang that used the concept of speculating in virtual currency to conduct pyramid schemes online." When Yang was surfing the Internet, he found someone promoting a virtual currency called "EOL", claiming that it could increase by more than 100 times. "I joined a group according to the prompts. There were people teaching in the group every day, and there were cases of recruiting people to rebate, and a profit threshold was set. My friend said it was like a pyramid scheme. I went to read the information and found that this 'Crypto Oasis EOL' was indeed a bit like a pyramid scheme, so I reported the case to the public security organs."

According to statistics, the people involved in the case were distributed in Jiangsu, Zhejiang, Jiangxi, Hebei, Yunnan, Hubei, Guizhou and other places, with more than 2,000 participants, and the hierarchical relationship reached more than four levels. The public security organs seized a total of more than 7.09 million yuan of funds involved in the case.

Shen: "When I was arrested by the public security organs, I was a little extreme at first. I felt that I was just an investor and did nothing wrong. After this period of reflection and learning, I realized that the operation model of the 'Crypto Oasis EOL' project is suspected of pyramid selling. I was the person who helped Zhang collect information and help him. I also realized my mistakes and was willing to actively hand over my illegal gains, hoping to be treated leniently. "

After multiple interrogations by the public security organs, Shen no longer held the view that virtual currency investment was free, and truthfully confessed the fact of participating in the crime.

After trial, the court held that Wang and Zhang, in the name of purchasing virtual currency and holding it for appreciation, developed and set up software for participants to purchase a certain amount of virtual currency to obtain the qualification of raising points and rebates, and formed a hierarchy in a certain order, using the amount purchased as the basis for raising points and rebates, inducing participants to continue to develop others to participate, disrupting the social and economic order, and the actions of the two constituted the crime of organizing and leading pyramid selling activities.

Finally, based on the facts, nature, circumstances, degree of social harm and voluntary confession of guilt, punishment and repentance of the two defendants, the above judgment was made.

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