“Mining” in the name of blockchain, a network MLM group was involved in a case involving 1.4 billion yuan

Modern Express News (correspondent Liu Xiuming, Weng Zhijuan, reporter Cao Dewei) With the rapid development of the Internet, cyber crimes are increasing day by day, and patterns emerge in endlessly. Recently, the Procuratorate of Runzhou District, Zhenjiang City filed a public prosecution against a gang suspected of organizing and leading pyramid schemes. The group borrowed the name of the blockchain to provide virtual currency “mining”, which can make currency appreciation and profit without the need for mining machines. Implement network pyramid marketing activities, involving a large number of people, spreading to Jiangsu, Guangdong, Shandong, Chongqing and many other provinces across the country. City, the amount involved is as high as 1.4 billion yuan.

Develop an online MLM platform

In May 2020, Li knew that network MLM is illegal, and deliberately “studied” the new MLM model and optimized and improved it. With the assistance of 7 people including Yang and Liu, he designed the “Gemini New Testament” network MLM platform and hired 3 The technical team developed the “Gemini New Testament” version 1.0 and 2.0 software, and rented cloud services. In mid-August 2020, the platform App was officially launched.

In order to cooperate with the operation of the network MLM platform, Li and others also developed a G exchange and a K exchange, set up a “transaction tower”, and traded the generated virtual digital currency parent currency and sub-currency on the two exchanges. Fictional strong technical strength to attract the public to join.

After the “Gemini New Testament” online MLM platform went live, Li organized Yang, Liu, Pan and others to form a community, introduced the platform operation model through group promotion, Internet promotion, offline lectures, etc., exaggerated the platform’s strength, and made fiction Profit prospects, and continue to expand the influence of the platform.

More than 84,000 registered members in half a year

How does the “Gemini New Testament” network MLM platform deceive the public? The main purpose is to use the blockchain to provide members with virtual digital currency value-added “mining”, and to conduct false propaganda in the name of not requiring a mining machine. Participants can become members as long as they purchase 100 base coins of virtual digital currency, and then purchase 10 base coins to activate the “superstring system” and generate their own unique “3S code”, of which 4 base coins are allocated to direct recommenders , The remaining 6 mother coins are equally distributed to the remaining 8 people in the upper level. Joined members enjoy the static income generated by the appreciation of currency speculation, and at the same time generate dynamic income from the development of offline profits. As of the incident, the platform has a total of more than 84,000 registered members, with a development level of 316, and the amount involved is more than 1.4 billion yuan.

The “Gemini New Testament” version 1.0 and 2.0 do not have any actual business activities, and no actual income is generated at all. However, the funds absorbed through the platform need to pay for platform maintenance, daily expenses, salary distribution, and renting office space. Expenses, Li and others are well aware that the collapse of the project will happen sooner or later. At the end of 2020, Li et al. pushed up the prices of the parent currency and sub-currency on the two exchanges all the way up, absorbing more influx of funds, and then self-directed and performed a hacker attack on the platform, delaying the collapse of the illusion that funds could not be withdrawn temporarily. However, as more and more members found that the funds could not be exchanged, the case took place.

Due to the new modus operandi, the large amount of money involved, and the large number of people involved, the Procuratorate of Runzhou District, Zhenjiang City, after intervening, put forward 18 investigation suggestions through 5 case discussions, and guided the public security organs to focus on the characteristics of blockchain decentralization and virtual currency transactions. Focus on server codes, platform data, etc., to find out the level of MLM organization development, investment operations and remuneration methods, and to further clarify the amount of funds absorbed. At the same time, the undertaking prosecutors and lawyers strengthened cooperation to jointly do a good job of interpretation and policy interpretation, prompting 15 of the 17 suspects to voluntarily plead guilty and plead guilty, and 13 voluntarily withdrew from the illegal proceeds totaling 447 million yuan.

In the end, the procuratorate’s comprehensive sentencing standards, factual evidence, and performance of repentance, etc., were charged with imprisonment ranging from two to six years and fines ranging from 100,000 to 1 million against 17 suspects for the crime of organizing and leading pyramid schemes. Determine the sentence and sentencing recommendations.

Currently, the case is being heard in the court.


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