Home
News
- 1 Chinese Filecoin mining organization, Shenzhen Shikongyun Technology was charged by the Chinese Authority for arranging a $83.3 Million pyramid scheme.
- 2 The activity came into the spotlight after China prohibited all crypto-related activities in 2021, leading to the downfall of the crypto sector in the Chinese marketplace.
Shenzhen Shikongyun Technology,Filecoin one of the biggest FIL Companies in China was charged for an $83.3 Million pyramid scheme by the Chinese authority. The firm was launched in 2020 as a decentralized file-sharing and storage service to offer technological solutions. The company is facing charges from Chinese authorities for enticing users to mine coins using the firm’s platform.
Case Against Shenzhen Shikongyun Technology
On Monday, 14 August 2023, a social media post sought the attention of the world towards China. The local court in Pingnan County heard a case for a Chinese Filecoin mining organization and its four executives. The firm was charged for allegedly being involved in an $83.3 Million pyramid scheme.
Filecoin is a public, open source, and digital cryptocurrency intended to be blockchain-based digital storage. It is a decentralized data storage marketplace and cryptocurrency and helps in removing malicious actors and removal of the same automatically. A post represented that, a Chinese local court in Pingnan county in the Guangxi autonomous region initiated a trial on SST company and four representatives including Lai, the founder of the firm. The company was suspected of practicing pyramid scheme activities, enticing individuals to mine FIL coins on the firm’s platform. Also, the firm demanded customers participate by paying mining fees.
“The activity is simply disturbing the social and economic orders”, the court stated. Also, the company set up platforms like bpool.io and filpool.io along with a website with a domain name ipfs.cn to promote the same. The case is under process and trials are proceeding to conclude.
Actions of China on Crypto
China banned all digital asset transactions from the Chinese market in September 2021 and busted SST in May 2022. When the firm was out of service, it had thousands of users and achieved around $83.3 Million (606.95 Million yuan) from the sites.
The company came into a flashlight when Hong Kong is actively supporting Web3 businesses as well as crypto. China on the other hand banned all crypto-related activities.
In Addition, one of the ex-employee of SST disclosed that the company is well aware of the Chinese laws and legislations and is wishing to expand on a global level. The statement was made before the company was brought into custody.
Currently, the FIL coin is trading for $3.80 with a market cap of around $1.6 Billion. Also, the trading volume of FIL in 24 hours is around $ 102 Million, a down of 1.56%. Binance, Bitrue, Bybit, Deepcoin, and OKX are some platforms offering FIL coins at their current price.
Conclusion
Chinese authorities charged SST, a FIL mining firm, for the $83.3 Million pyramid scheme. The firm enticed individuals to mine FIL coins on the firm’s platform and took part in the mining activities by paying fees. The company and its four executives including the founder are under supervision and the court is proceeding to reach results.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
