People's Court Daily: Both laws and technology are indispensable in combating "blockchain" pyramid schemes

Faced with the fact that "blockchain" pyramid schemes have emerged and are showing signs of spreading, while emphasizing the need to crack down on them in accordance with the law, we should also tighten the "cage" technically.

Recently, blockchain technology has become very popular. For a time, the prices of various digital currencies have risen, and capital has reveled in the excitement. From behind the scenes to the front stage, behind the hot blockchain technology, another "feast" is also surging under the current: cheating investors by taking advantage of the hot spots, hyping digital currencies to "cut leeks", issuing "air coins", pyramid selling and fraud under the banner of blockchain... Fraudulent behavior in the name of blockchain is on the rise.

Blockchain is a network data distribution library with incomparable advantages of traditional databases, such as transparency, efficiency, tamper-proof, and decentralization. As a disruptive core technology, the broad application scenarios of blockchain, while attracting capital, also make criminals smell the "business opportunity" of fraud. Among them, the most eye-catching is the pyramid scheme fraud under the guise of blockchain. Judging from many typical cases cracked by the police before, the number of people involved in each "blockchain" pyramid scheme fraud and the amount of money involved are extraordinary, highlighting the urgency and importance of cracking down on it according to law.

As an upgraded version of traditional pyramid schemes, "blockchain" pyramid schemes are more deceptive and tempting, and are most likely to deceive people. However, no matter how carefully it is packaged, it is essentially the same as traditional pyramid schemes and is prohibited by law. Article 224 of the Seventh Amendment to the Criminal Law of the People's Republic of my country clearly stipulates that pyramid schemes that disrupt the economic and social order for the purpose of defrauding property shall be convicted and sentenced for the crime of organizing and leading pyramid schemes. In serious cases, the offender may be sentenced to fixed-term imprisonment of more than five years and a fine.

It can be seen that even if pyramid schemes are disguised as blockchain, they will inevitably be severely punished by the criminal law. In view of the great harm of "blockchain" pyramid schemes, in recent years, judicial organs have continuously stepped up their crackdowns and achieved good governance results. While effectively curbing the frequent occurrence of such crimes, they have also accumulated valuable judicial experience for cracking down on "blockchain" pyramid schemes in accordance with the law.

However, compared with the downstream governance effect of judicial crackdown on "blockchain" pyramid scheme fraud crimes, the public is more concerned about whether it is possible to prevent "blockchain" pyramid scheme fraud in advance from a technical perspective. Therefore, in the face of the fact that "blockchain" pyramid scheme fraud has risen and has the momentum to spread, while emphasizing the crackdown on it according to law, we should also tighten the "cage" from a technical perspective. In other words, both legal and technical means are indispensable to cracking down on "blockchain" pyramid scheme fraud crimes.

Objectively speaking, the use of high technology in "blockchain" pyramid schemes has increased the difficulty of supervision, but this does not mean that supervision can only do nothing. In fact, most pyramid schemes in the name of blockchain will be frequently spread and leave traces on the Internet. As long as the regulatory authorities strengthen supervision, it is not difficult to find clues. As long as the regulatory authorities pay attention, they can catch the tail of the scammers. In this regard, the regulatory authorities must adhere to the governance thinking of "the devil is one foot high, the road is ten feet high", effectively innovate regulatory means, adopt refined response measures, and weave a dense technical prevention network from the source, so as to maximize the opportunity for pyramid schemes and frauds wearing blockchain vests to escape from the cage. Only in this way can the crackdown on "blockchain" pyramid schemes and frauds receive the governance effect of both upstream and downstream efforts, and fundamentally curb the momentum of the frequent spread of such crimes.

Of course, while putting the "blockchain" pyramid scheme fraud under the dual bridle of law and technology, we must also educate and guide the public to keep a clear mind of "there is no free lunch in the world" in the face of temptation, so as to adopt a rational cognitive attitude and prevent the criminals from using the name of blockchain to commit pyramid scheme fraud.