Involving currency pyramid schemes, Manxingyun system collapses again

Author | JX kin

Editor | Wen Dao

Manxingyun, which was transformed from the pyramid scheme project Yunxuntong, collapsed.

The Monics APP under the name of Manxingyun can no longer be downloaded or registered. At the same time, members who have invested real money to buy various currencies under the Monics system are facing the situation of having their withdrawal requests rejected.

Lai Caiyun, the founder of Manxingyun who likes to do live broadcasts, has not appeared in live broadcasts for a long time. This Malaysian woman with a Chinese face packaged Manxingyun into an international group integrating "real estate, catering, tourism, hotels, banking, aviation and financial technology industries". Since 2017, she has taken advantage of the blockchain trend and issued a variety of digital currencies under the brand Monics.

In fact, Man Xingyun and Lai Caiyun have both been listed in the judgments of many Chinese courts as MLM project converters and organizers. Since 2014, Lai Caiyun has taken over Yunxuntong, founded by MLM leader Song Miqiu, and initially engaged in the original stock MLM scam of Yunshumao. Since then, digital currency has become her new packaging, and the core is still the MLM activity of attracting people to deposit money and rebate layer by layer.

Song Miqiu was sentenced to 12 years in prison by the Guiyang County People's Court of Hunan Province in July last year for organizing and leading pyramid selling activities and illegally crossing the national (border) border. Is Lai Caiyun's end far away?

Manxingyun's cryptocurrency-related app is suspected to be shut down

"Registering now is meaningless." Chu Yunlong (pseudonym) told the truth when Fengchao Finance consulted about the registration process of Monics APP at the end of June. He claimed that he had invested in Manxingyun's financial products, "but I haven't done it for a long time." His WeChat QR code was posted on an official website of Manxingyun. "It was used to attract traffic in the early days. Now it is no longer used. Recently, many static members' withdrawal applications have been rejected."

Chu Yunlong revealed that the domain name of Manxingyun’s official website is always updated, and the download address of the Monics APP has also changed many times. Lai Caiyun, the founder of Manxingyun Group, loves to do live broadcasts, but has not appeared for more than a month.

One of Manxingyun's official websites, manxingyun.net, is currently inaccessible, but another Manxingyun promotional website with the domain name gametobank.com is still accessible, where you can find the main channel for members to deposit funds - Monics registration link and APP download QR code. However, after trying, Fengchao Finance found that the Monics platform could no longer be registered, and its APP could not be downloaded normally.

Many of Manxingyun’s promotional websites have been retained, allowing the outside world to get a glimpse into its history of building its own Monics digital currency system and engaging in pyramid schemes.

It is not difficult to find out from the Monics promotional materials that this brand mainly uses blockchain and digital currency to carry out pyramid selling, and has built its own digital currency bank Monics Bank, digital currency payment MPay, and the APP "MSD Headlines" for internal publicity. These are just names used by Manxingyun to issue, publicize, and promote air coins.

Manxingyun claims to have blockchain 3.0 technology and issued 30 billion MSD digital currencies in 2017, entering the cryptocurrency investment market. The official once said that MSD would rise to $900. The currency actually appeared on a third-party cryptocurrency data website.

MSD market trend

According to Feixiaohao, MSD was launched on the secondary market in October 2017, with an initial price of about $0.1, and it has been falling since its launch. As of 3:00 p.m. on July 3, it was temporarily reported at $0.0055, a 94.5% drop from the initial price.

In the two scenarios of banking and payment, Monics has created at least four so-called digital currencies by integrating popular platform coins, public chains, and stable coins in the blockchain and currency circles, including MSD, which was first issued in 2017, MUI and MOS, which are used to settle member income or interest within the system, and MSC, a US dollar stablecoin that claims to be backed by gold. Various currencies output information through MSD headlines and Monics websites, and are promoted through online communication tools such as WeChat and QQ groups and offline events, attracting unspecified individuals to become members of Monics by means of static and dynamic income.

Manxingyun MUI Rewards Mode

Taking MUI as an example, Munics has customized a bonus system, which is nothing more than the most common static and dynamic income of MLM coins. The so-called "static" means that users invest principal to earn interest. The principal investment is set from low to high as three levels: gold card, platinum card, and global card. The higher the level, the higher the interest. The so-called "dynamic" is to recruit people to promote directly. The 12-generation interest return level has the characteristics of MLM.

"Now static members are not allowed to withdraw any interest, and many members have reported the case to the local public security organs." Chu Yunlong said that in the past, every time MSD headlines released information about a new currency, Lai Caiyun would call on members to "seize the opportunity to invest money" on the official website's live broadcast channel.

Nowadays, the MSD headlines are no longer updated. The latest announcement was on June 19, warning users to beware of emails sent in the name of MSD officials. As for how the investment members can withdraw their money now, no one can tell them.

Lai Caiyun takes over the MLM model of Yunshumao

In fact, Munics is just a digital currency cover that Manxingyun MLM system has been building since 2017. Earlier, Manxingyun was engaged in the original stock MLM scam, a model that was inherited by Malaysian Chinese Lai Caiyun from Chinese MLM leader Song Miqiu in 2014. At that time, Song Miqiu, who operated the Yunshumao MLM, was serving a sentence in Thailand for holding illegal documents. During that time, he contacted Lai Caiyun in prison and taught him the MLM stick.

Compared with Yunshumao MLM, Song Miqiu's Five Elements Coin MLM is more well-known in the cryptocurrency circle. However, whether it is Yunshumao, Yunxuntong or the later Five Elements Coin, they are all MLM organizations defined by domestic public security, procuratorial and judicial organs. On July 9, 2019, Song Miqiu was sentenced to 12 years in prison by the Guiyang County People's Court of Hunan Province for organizing and leading MLM activities and illegally crossing the national (border) border.

Song Miqiu’s arrest in 2017 uncovered the “MLM empire” he had been building since 2012.

The verdict shows that Song Miqiu, who was born in Wuchang City, Heilongjiang Province in 1977, only has a junior high school education. From 2009 to March 2012, he came into contact with some MLM personnel when he opened a restaurant in Shenzhen. After learning that he could defraud a large amount of money in a short period of time, he learned the MLM model and operation through the Internet and designed a dual-track MLM system, named "Cloud Computing Digital Trade Alliance", or Yunshumao.

During the same period, Song Miqiu hired programmers to design several supporting MLM websites, and began to use Zhang Jian as a pseudonym to build a set of membership, rebate, and stock trading sections.

Starting from April 2012, Yunshumao Company promoted itself as an international trade group that had successfully obtained registration with the Ministry of Industry and Information Technology through the distribution of promotional materials and lectures. It also falsely promoted the company as a commercial aircraft carrier, China's first mixed-ownership economy advocated by the state, and implemented employee shareholding. Zhang Jian also packaged himself as the richest man in the future world. The verdict shows that the company, without the qualifications to issue stocks, sold Yunshumao original shares and used the bait of developing new members and rebates to lure participants to continue to develop members. Yunshumao made illegal profits by collecting membership fees, member account renewal fees, and withdrawal fees.

As of April 14, 2014, there were 1,270,111 registered member accounts on Yunshumao's management system website. In the three-level membership system, the number of accounts developed by top network members downline reached 1,269,851, and the number of downline levels developed reached 480.

After Song Miqiu started organizing pyramid schemes, he was arrested by police in Henan, Hunan and other places. In October 2013, Song Miqiu, who was still on bail, fled from Yunnan to Malaysia via Myanmar, and remotely controlled the domestic pyramid scheme leader through the Internet in Kuala Lumpur to continue recruiting members.

Song Miqiu's pyramid scheme activities attracted exposure from domestic media and the attention of local government departments. In March 2014, he fled to Thailand to remotely control the pyramid scheme organization, but was arrested by Thai police seven months later for holding illegal documents and was sentenced.

It was during his imprisonment in Phuket, Thailand, that Song Miqiu authorized Lai Caiyun and others to set up multiple sub-MLM platforms, including Yunxuntong, Wuhua Alliance, and Jianye Alliance, based on "Yunshumao". The verdict showed that the amount involved in Yunxuntong exceeded 9.313 billion yuan. From October to November 2016, he also planned the "Five Elements Coin" with the help of Yunshumao and sub-MLM platforms to the key members who visited him in prison. The amount involved in the project was at least 1.743 billion yuan.

Since March 2018, courts in Shanxi, Sichuan, Guizhou, Hunan, Jilin and other places have mentioned the detail that the organization was the predecessor of Manxingyun when hearing cases related to Yunxuntong pyramid schemes. Lai Caiyun was pointed out by multiple defendants as the person in charge of Manxingyun.

Lai Caiyun, who "took over" Yunxuntong in 2014, renamed the pyramid scheme organization Manxingyun and copied Song Miqiu's packaging method, portraying Manxingyun as an international group integrating "real estate, catering, tourism, hotel, banking, aviation and financial technology industries", continuing the so-called original stock pyramid scheme investment scam.

Conspiring with Yu Lingxiong to expand the digital currency pyramid scheme

Judging from the timeline of Manxingyun launching Monics, at least before 2017, Lai Caiyun's pyramid scheme was mainly selling original shares. At the end of 2017, as Bitcoin soared, blockchain became a hot topic. Lai Caiyun took advantage of the situation and used the pyramid scheme model in the shell of digital currency. After launching MSD, he issued three more digital currencies.

According to media reports, in 2019, Manxingyun was closed down by the Malaysian police for being involved in a pyramid money game. On May 8, Manxingyun founder and CEO Lai Caiyun, the company's director Cai Lingmei, and former director Huang Defeng were tried in the Kuala Lumpur Court, but the three refused to plead guilty. In the end, the court allowed them to be released on bail pending trial on the condition of paying a bail of 200,000 to 400,000 ringgit (Malaysian currency unit) plus a guarantor.

The video of Lai Caiyun being taken to court was circulated online

Currently, only MSD can still be traded on some exchanges, including BICC, the cryptocurrency exchange where Manxingyun promoted its strategic investment in October 2019. At that time, Manxingyun was also launching Monics Bank.

The launch of Monics Bank’s currency-related project may be related to another funding pool. At the end of 2019, Monics Bank announced that it had cooperated with Yu Lingxiong and merged with YouBank, claiming that the merger had added 20 million members.

YouBank is regarded as a Ponzi scheme by the traditional cryptocurrency industry, and Yu Lingxiong, who operated the project behind the scenes, was also jokingly called a pyramid scheme master by the industry. Before the cooperation between the two parties, YouBank, which also used digital currency to attract money, had already closed deposits and withdrawals. Lai Caiyun undoubtedly took over YouBank's scheme. Yu Lingxiong threw away the mess, and Lai Caiyun wanted the members whose blood the pyramid scheme "leeches" needed the most.

YouBank and Manxingyun's cooperation content

Now, Monics has collapsed and Lai Caiyun has faded out of the public eye.

Last month, it was reported online that the people involved in a digital currency fund ring under the Fireworks model were controlled by domestic police; in the mainstream media, there were frequent reports of police in Shandong, Guangdong and other places cracking down on digital currency fraud, money laundering and other crimes; recently, Zhao Dong, the founder of Renrenbit and Dfund, has also been "cooperating with the police investigation."

MLM leader Song Miqiu was sentenced to 12 years in prison. Is the end of his apprentice Lai Caiyun not far away?