Claims that investing in mining machines can earn high Bitcoin returns

Our newspaper reports that the methods and means of pyramid schemes have been constantly "innovated" with the progress of the times, making it difficult for many people to guard against them. The defendant Wu in this case joined a pyramid scheme organization and directly or indirectly developed many downline members. He claimed on the Internet cloud that investing in mining machines could get high returns on Bitcoin. In the end, the myth was shattered, and many pyramid schemers lost all their money. The amount involved in the case reached more than 50 million yuan. On December 14, the Dongguan Intermediate People's Court of Guangdong Province publicly pronounced the first instance of the case. The defendant Wu was convicted of organizing and leading pyramid scheme activities and was sentenced to five years and three months in prison and a fine of 500,000 yuan.

In the second half of 2013, Cai (handled in another case) advertised that investing in the mining machines of Krypton Energy Group (without business registration) would bring high returns in Bitcoin, which could be freely withdrawn and traded. Later, Cai actively wooed Xu (handled in another case) to become a member of the Krypton Energy Group. Xu then recruited the defendant Wu, who recruited Wang Fu and Qian, and gave Wang Fu and Qian four mining machines linked to Xu's mining machines for free. Wang Fu and Qian continued to develop a large number of downlines based on the four mining machines, and Wu directly or indirectly received more than 50 million yuan in pyramid scheme funds.

During this period, Wu organized and attended Krypton Energy Group's marketing promotion meetings and organized member tours in the name of Krypton Energy Group. At the end of 2014, the price of Bitcoin of Krypton Energy Group fell sharply, causing panic among investors. Wu claimed through WeChat and small meetings that the Krypton Energy Group website had been adjusted and would soon be restored, and encouraged investors to buy at a low price. At the end of February 2015, the Krypton Energy Group website was completely closed, and Cai, Wu and others could not be contacted.

After trial, the court held that the defendant Wu, in collusion with others, organized and led pyramid selling activities in the name of selling goods, providing services, etc., requiring participants to pay fees to obtain membership qualifications, and forming levels in a certain order, directly or indirectly using the number of people developed as the basis for rebates, inducing participants to continue to develop others to participate, defrauding property, and disrupting the economic and social order, which constituted the crime of organizing and leading pyramid selling activities. Wu directly or indirectly received more than 50 million yuan in pyramid selling funds, and the circumstances were serious. Wu actively participated in the joint crime of organizing and leading pyramid selling activities, played a major role in the joint crime, and was the principal offender. He should be punished according to all the crimes he participated in, organized, and directed. The court then made the above judgment.

(An Yanling)