Keyword virtual currency scam
In recent years, the violent price fluctuations of virtual currencies have attracted widespread attention. The legend of making a fortune overnight has led many people to rent and buy equipment and join the “mining business”. Some people use the guise of selling computing power (the ability of mining equipment to dig out virtual currency), using “high yield, recommended rebates” as bait to lure victims to invest, develop offline, build a pyramid selling network, and obtain illegal profits. In 2018, Wang Shengguo, a university graduate who lives in Suzhou, turned his attention to virtual currency due to the downturn of the industrial company he started and operated. In June of the same year, Wang Shengguo met several people on the blockchain forum. They were very optimistic about the development prospects of virtual currency, so they hit it off. Wang Shengguo became a corporate legal person and jointly established a Miyun Technology Company (a pseudonym).
After the establishment of the company, the business mainly focuses on “mining machines”. The so-called “miner” refers to a computer with a large-capacity hard disk and a high-performance graphics card used to “mine” virtual currency. By selling “mining machines”, the company then collects the profit of the machine and the operation and maintenance costs of the machines entrusted to it by customers.
Du Ziming (pseudonym) from Shanghai is the developer of a new type of virtual currency P coin, especially the need for partners with large computing power to promote P coin. In early 2019, Du Ziming led his project team to cooperate with Miyun. Since then, Miyun has basically stopped its external sales business. On the one hand, it provides “computing power” leasing services to Du Ziming’s team, and they resell the computing power to the public to “mine” P coins. On the other hand, they assist in providing mining machine demonstrations. , publicity venues, equipment maintenance and so on.
After a period of business contact, Wang Shengguo found out that after Du Ziming resold the computing power, the price had increased by five times. Why not sell computing power directly? Wang Shengguo began to think about more “business” content.
After negotiating with other shareholders, in July 2019, Wang Shengguo formally proposed the business model of selling computing power to everyone at the company meeting: after users register an App account, they need to transfer money to Wang Shengguo’s account through other platforms, and get “P Coins”. “Mining” computing power (for example, if you pay 2,000 yuan, you can get 1T computing power in the App and pledge 300 P coins), and at the same time promise that users can get static income and dynamic income – static income, which is 1.1% per day The fixed rate of return is returned to the personal Miyun account in the form of P coins, which can be repaid in a maximum of 3 months; the dynamic income is divided into recommendation award, management award, and level award, which are determined by the number of direct development users, the total investment amount of development users, Based on the total investment of level users, it is divided into 3-6 levels of rebate ratios from high to low to encourage existing members to continuously develop new users.
Although someone in the company once suggested that the promotion method is suspected of pyramid selling, Wang Shengguo continued the business of “selling computing power” on the grounds that the company’s debts had no way out and that it could take advantage of imperfect virtual currency legislation.
In this way, through offline community publicity, circle of friends publicity and other methods, Miyun’s business scale is getting bigger and bigger. In addition to Suzhou, the team led by Wang Shengguo has continued to build Hangzhou community and Inner Mongolia community.
At this time, due to technical problems, the background program of Du Ziming’s team has not been written, and the P coin has not been launched. Miyun Technology has never actually “mined”, but the participants are full of expectations.
In March 2020, the Suzhou police received a report from the public that Miyun Technology Co., Ltd. had raised funds from unspecified objects. After investigation, it was found that since July 2019, Miyun Technology Co., Ltd. began to sell “mining machines” in the name of computing power. Relying on Miyun App, participants were required to register accounts and pay fees to obtain qualifications, and The tiers are formed in order, directly or indirectly based on the number of development members and the amount of purchased computing power as the basis for rebate calculation, to lure participants to continue to develop others to participate, defraud property and disrupt economic and social order.
According to statistics, there are at least 5 levels of registered members in the Miyun App, with far more than 50 participants, more than 4,500 registered accounts, and 19 levels of cash levels. The total amount of MLM absorbed has reached more than RMB 55 million (converted in P currency). Related management Personnel has constituted the crime of organizing and leading pyramid selling activities.
On September 15 this year, the court ruled that Wang Shengguo and other 6 persons constituted the crime of organizing and leading pyramid selling activities, sentenced to five years and three months to one year and four months in prison, fined several times, and recovered all illegal gains.
In view of the large number of people involved and the large amount involved in this case, and it is the first case of money network pyramid selling in Suzhou Industrial Park, the People’s Procuratorate of Suzhou Industrial Park actively guides the public security investigation and gives advice on Electronic evidence collection and data analysis. The value of the company’s virtual currency, the number of member accounts, etc. are identified, based on which the company’s operations are identified, the level and amount of crimes are determined, and the charges of the case are clarified.
Recently, the People’s Bank of China and other departments issued the “Notice on Further Preventing and Disposing of Hype Risks in Virtual Currency Transactions”. The notice clarifies that virtual currency does not have the same legal status as fiat currency, and virtual currency-related business activities are illegal financial activities.
The case-handling prosecutor of the Suzhou Industrial Park People’s Procuratorate reminded that investors should be alert to various scams of illegal fundraising, pyramid schemes, and fraud under the guise of virtual currency, not blindly believe in the promise of high yields, and establish correct currency and financial concepts.