Post-00 college student issued Dogecoin and then withdrew liquidity, sentenced to 4 years for fraud
According to The Paper, Yang Qichao, a post-00 college student, issued "Dogecoin" BFF on BNBChain. He was found guilty of fraud by the People's Court of Nanyang High-tech Industrial Development Zone in Henan Province at the first instance for withdrawing liquidity, causing others to lose 50,000 USDT coins. He was sentenced to 4 years and 6 months in prison and fined 30,000 yuan.
Yang Qichao, born in 2000, was a senior student about to graduate from a university in Zhejiang before the incident. In early May 2022, he paid attention to a community autonomous organization called District Future DAO, which carried out early publicity and preheating for the issuance of decentralized virtual tokens. He created a token BFF with the same English name as District Future, adding 300,000 BSC-USD and 630,000 BFF liquidity.
At the same second when Yang Qichao added liquidity, Luo spent 50,000 BSC-USD to exchange 85,316.72 BFF coins. Just 24 seconds later, Yang Qichao withdrew the liquidity in the BFF coin, resulting in Luo only exchanging 21.6 BSC-USD for 81,043 BFF coins.
When tracing the source, Luo found Yang Qichao through a common WeChat friend. Luo asked Yang Qichao to refund his losses, but was rejected. On May 3, 2022, Luo reported to the police, claiming that he was defrauded of more than 300,000 yuan (converted to 50,000 USDT coins) from investing in virtual currency. Soon, the police filed a criminal case on suspicion of fraud and arrested Yang Qichao in Hangzhou, Zhejiang in November of that year.
Yang Qichao said: "I just took back the points that my big brother cut from me. I was cut a lot."
