A virtual currency investment project marketed as "play and earn" has been confirmed as a pyramid scheme, resulting in prison sentences for four key members. The Shishi City Procuratorate in Fujian Province prosecuted the case, leading to a first-instance verdict convicting the defendants of organizing and leading a pyramid scheme. Despite appeals, the court of second instance upheld the original verdict in July 2025.
The court found that the scheme used virtual currency and NFT concepts to disguise its operations, which included a "threshold fee" for joining, a hierarchical structure for recruitment, and reliance on new member funds to pay returns. These elements met the criteria for a pyramid scheme under Chinese law, lacking genuine business activities and sustainable income sources.
Virtual Currency 'Play and Earn' Scheme Exposed as Pyramid Scheme, Sentences Upheld
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