Guizhou Qiannan cyber police cracked a pyramid scheme involving "virtual currency" and arrested 15 suspects.

PANews reported on December 18 that, according to the WeChat official account of the Ministry of Public Security's Cyber Security Bureau, the Guizhou Qiannan Cyber Security and Economic Investigation departments jointly cracked a "virtual currency" online pyramid scheme case. The special task force traveled to multiple locations and successfully arrested 15 suspects. Investigation revealed that the pyramid scheme promoted the slogan "Everything of value in the world can be tokenized," established a virtual currency trading platform without real-name verification, set up various levels, and required members to deposit and pledge virtual currency to participate in pyramid scheme activities. Members profited by developing downlines and earning direct referral rewards. It was an online pyramid scheme with more than three levels and thousands of participants.

Suspects Jia Moufu, Liu Mou, Duan Mouyao, and others established a virtual currency online, using the lure of high returns from purchasing the virtual currency to deliberately inflate its price. They divided members into "tiers" based on their purchase amounts, with increased returns for higher tiers, thus encouraging existing members to recruit new members and participate in a pyramid scheme, achieving tiered profit rebates. The platform exploited the fact that most participants were unfamiliar with virtual currencies, using staff to regularly conduct training sessions promoting "high returns, low risk," and facilitating members' exchange of RMB for virtual currency before depositing it. Currently, all suspects involved have been apprehended according to law.