A recent court ruling in Chengdu has found the operators of the 'Kirin Miner' platform guilty of fraud and running a pyramid scheme, resulting in a life sentence for the main perpetrator and up to 15 years for others involved. The platform, which utilized a blockchain-based mining machine model, was deemed to have engaged in illegal activities by mandating fees and promising unrealistic returns. This case serves as a cautionary tale for Web3 startups, emphasizing the importance of avoiding business models that involve mandatory fees, multi-level rewards, and false promises to steer clear of legal repercussions.