Beijing's Haidian District Market Supervision Bureau has cracked down on the city's first case involving a tech company that provided blockchain and cryptocurrency services to facilitate a pyramid scheme, imposing combined fines and confiscations exceeding 930,000 yuan.
The penalized firm served as an outsourced service provider for a public blockchain that launched "Atomic Plan" and "Hathaway Plan" — recruitment-based rebate schemes requiring participants to invest funds for membership eligibility. Despite awareness of the chain's pyramid structure, the company continued offering technical operations, promotional marketing, and exchange connectivity services, enabling fund flows and scheme expansion. Police subsequently dismantled the operation and criminally detained its organizers, while the tech company faced administrative penalties for facilitating illegal activity.
Beijing Penalizes First Tech Firm Facilitating Blockchain-Based Pyramid Scheme With 930K Yuan Fine
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