Beijing, China Cracks Down on First Virtual Currency Pyramid Scheme Case, Involved Company Fined and Confiscated RMB 930,000

October 29: The Market Supervision Administration of Haidian District, Beijing, China, recently handled the city's first illegal case involving the use of blockchain and virtual currency technology to assist pyramid scheme activities, with a technology company fined and confiscated a total of over 930,000 yuan.

The company involved provided outsourced services including technical operations and maintenance, marketing promotion, exchange docking, and maintenance for a certain public chain. This public chain had previously launched the "Atomic Plan" and "Hathaway Plan," requiring participants to invest funds to gain joining qualifications and offering rebates based on the number of recruits. Regulatory authorities determined that the company involved, despite knowing that the relevant projects were suspected of being pyramid schemes, continued to provide technical and operational support, facilitating capital flows and the spread of pyramid scheme activities. (Beijing Daily)