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- The offenders influence the investors by promoting ads with the concept of hotspots and by using the theory of “blockchain” they carry on illegal fundraising, several pyramid schemes and fraudulent.
- In the middle and late June 2018, co-criminal He Qiu and others established the Fujian Silver Titanium Blockchain Club.
- The customer was required to register as a member to purchase the so-called “silver-titanium coins” in the app and wait for its prices to uplift before they could be sold in the app.
The digital ecosystem is occupied with a variety of “virtual currencies” based on “blockchain” technology. The offenders influence the investors by promoting ads with the concept of hotspots and by using the theory of “blockchain” they carry on illegal fundraising, several pyramid schemes and fraudulent.
A few days ago, the People’s Court of Shuangqing District, Shaoyang City, Hunan Province has condemned a “virtual currency” scam. Ying Jian found that the scam gang set up a blockchain club for the motto of unlawful possession, issuing illegal virtual currency, adopted untrue facts and masked the truth, and in order to invite dinner and red envelopes, the scammers publicized that the virtual currency would only fluctuate up and down.
How the scammers trick the members?
Many times this trick has been used for market promotion and selling massive virtual currencies to defraud others’ property.
In the middle and late June 2018, co-criminal He Qiu and others established the Fujian Silver Titanium Blockchain Club. The promoter of the club market was Tan Qingwen. Mao Minjie was the financer of the club who was responsible for getting new members.
The club exposed that “Silver Titanium Coin”, a virtual currency for sale only ups and did not fall. They issued the coin in an endless amount. The coin was produced at a certain ratio and was traded at a certain ratio every day.
The customer was required to register as a member to purchase the so-called “Silver-Titanium Coins” in the app and wait for its prices to uplift before they could be sold in the app. This sale of coins builds trust in the members that they craved to invest more in the silver-titanium coins and they started strengthening the terms and policies to latch the members in.
In September 2018, the Silver Titanium Blockchain Club was unable to gain the “Silver Titanium Coins” sold by members, because of a broken capital chain. Due to this situation, the victims requested to refund their money.
Meanwhile, Shao Yang launched “The Thailand Global Travel Chain” and required members to buy it. Some members purchased the “The Thailand Global Travel Chain” but the others were unable to acquire the currency sold by members because of a broken capital chain.
What was the final verdict?
With this fraudulency, the defendants Tan Qingwen, Mao Minjie and others used the aforementioned tricks to steal more than 1.58 million yuan of over 104 victims.
On November 15, 2019, the People’s Procuratorate of Shuangqing District of Shaoyang City accused the defendant Tan Qingwen and Mao Minjie with deception and filed a public trial with the Shuangqing District People’s Court.
Summing up the whole, as per relevant law, Tan Qingwen was condemned to eight years in prison for fraud with a fine of 15,000 yuan, and Mao Minjie was sentenced to five years in prison for fraud and a fine of 10,000 yuan.
