Virtual currency pyramid scheme list revealed: "Baichuan Coin"

Yesterday evening, the Economic Investigation Brigade of the Public Security Bureau of Xinyuan County, Xinjiang, officially released an announcement through its official Weibo account: Baichuan Coin is an illegal pyramid scheme. Please stay away from it and report it! This is the first time that the public security department has publicly disclosed the malicious pyramid scheme of Baichuan Coin. I believe there will be follow-up actions.

The announcement is as follows:

Xinyuan County Public Security Bureau Economic Investigation Brigade Weibo (Blue V certification )

     According to the information available to Bitcoin House, Baichuan Coin is similar to BBT (which has been repeatedly exposed by the media and has now been renamed Morgan Coin), both of which are illegal pyramid schemes disguised as virtual currencies.

The marketing model of Baichuan Coin is similar to a Ponzi scheme. People keep joining to use the money from the next member to pay the salary of the previous member. The so-called Baichuan Coin is only circulated among these members. Outside this circle, it is just a number and has no use . To put it bluntly, it is just a group of people's self-entertainment . The people at the top of the pyramid make a lot of money. As for when the capital chain will be broken, no one knows. They will stop when they make enough money. After a certain period of time, the so-called Baichuan Coin will definitely evaporate. It is a typical MLM standard, with no products and relying on recruiting people.

Baichuancoin internal team chat record

    Searching for relevant introductions to Baichuan Coin, many of the crude promotional contents are full of loopholes.

According to the Baichuan Coin team , on September 20 , the Xinyu Municipal Government allocated more than 3,000 acres of land to Baichuan Coin operator Baichuan World Group. It even stated that after Baichuan World Group took the initiative to apply, all servers of the Baichuan Coin system have been successfully monitored by the state, and the state will soon issue a franchise license to Baichuan World Group.

   After searching the Xinyu Municipal Government website and related websites, the author did not find any documents related to the Xinyu Municipal Government allocating land to enterprises for operation, nor did he find any relevant media reports. It is not a small matter for a prefecture-level municipal government to allocate 3,000 mu of land to a certain enterprise for operation, but it is not reasonable to find any public information.

     It is even more ridiculous that the state is about to issue a franchise license to Baichuan World Group. As we all know, in December 2013, the People's Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission jointly issued the "Notice of the People's Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission on Preventing Bitcoin Risks" (Yinfa [2013] No. 289) . The "Notice" clearly requires that financial institutions and payment institutions shall not use Bitcoin (virtual currency) to price products or services, shall not buy or sell Bitcoin (virtual currency) or act as a central counterparty to buy or sell Bitcoin (virtual currency) , shall not underwrite insurance business related to Bitcoin (virtual currency) or include Bitcoin (virtual currency) in the scope of insurance liability, and shall not directly or indirectly provide customers with other Bitcoin (virtual) related services . Therefore, Baichuan World Group's claim that " the state is about to issue a franchise license to Baichuan World Group " is nonsense.

     In addition, after checking the government's corporate information database, Baichuan Coin also has many doubts and has been included in the "Operation Abnormality List" of the National Enterprise Credit Information Publicity System.

According to the Interim Regulations on Enterprise Information Disclosure
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Article 17: Any of the following circumstances shall be listed in the abnormal business directory by the industrial and commercial administrative department at or above the county level, and announced to the public through the enterprise credit information disclosure system to remind them to fulfill their disclosure obligations; if the circumstances are serious, the relevant competent department shall impose administrative penalties in accordance with relevant laws and administrative regulations; if losses are caused to others, compensation liability shall be borne in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law:

(1) An enterprise fails to publish its annual report within the time limit prescribed in these Regulations or fails to publish relevant enterprise information within the time limit ordered by the industrial and commercial administration department;
(2) The enterprise conceals the true situation or engages in fraud in the information it discloses.

If an enterprise included in the list of abnormal business operations performs the obligation of publicity in accordance with the provisions of these Regulations, the industrial and commercial administrative department at or above the county level shall remove it from the list of abnormal business operations; if it fails to perform the obligation of publicity in accordance with the provisions of these Regulations for more than 3 years, it shall be included in the list of serious illegal enterprises by the industrial and commercial administrative department of the State Council or the industrial and commercial administrative department of the people's government of the province, autonomous region or municipality directly under the Central Government, and shall be publicly announced to the public through the enterprise credit information disclosure system. The legal representative or person in charge of an enterprise included in the list of serious illegal enterprises shall not serve as the legal representative or person in charge of other enterprises within 3 years.

Baichuan Coin’s other false promotional materials are also full of loopholes and are truly a “shell company.”

Query address: http://wsgs.fjaic.gov.cn/creditpub/home Usage: Enter Fujian Baichuanbi Network Technology Co., Ltd. , and the result shows that the registered business premises cannot be contacted.

Fujian Qingdi Agricultural Development Co., Ltd., a subsidiary of Baichuan World , has a stock code of 206800. Since the company is listed, it must be registered. See below. The query website is still http://wsgs.fjaic.gov.cn/creditpub/home   , but no results were found.

Let's take a look at the high-end stocks. The query website is http://quote.eastmoney.com/search.html?stockcode=206800   , still can't find anything .

This is another subsidiary company, right? You can check the stock code to see if you can find it.

Let's check whether this company is a shell company. Check the website: http://wsgs.fjaic.gov.cn/creditpub/home  

It has run away and no one can be contacted. It is a typical shell company.

     The license clearly states that it is "online game virtual currency", so why do some people think that it is allowed to be a financial product? It's so funny .

     In a word, Baichuan World is a shell company. The so-called subsidiary companies either don't exist at all or are also shell companies. And they are still listed? There is not a single trace of them .

Summarize:

     First of all, from the perspective of the essential profit model, it is simply not enough to support the entire profit system and is bound to collapse, playing with concepts through e-commerce and the virtual Internet .

Second, the company’s name is Baichuan, and its official website shows that it has many subsidiaries, but the financial management company has no correlation with the listed company .

Third , the scope of the business license states " using the Internet to operate gaming products (including the issuance of virtual currency for online games, but requiring approval from relevant departments) " . What is permitted is online gaming currency, not virtual financial currency .

Fourth , even if the investment is really profitable, the money is raised in the early stage, and the time limit for return in the later stage may make the investor take risks to gain a little possible profit, because the game is not over yet and more people need to join in!

Various evidences show that Baichuan Coin is a malicious pyramid scheme. Bitcoin Home reminds you again that there are many pyramid scheme coins under the banner of e-commerce and new Internet finance . Please be careful to identify and stay away from pyramid schemes !!!