PANews reported on September 13 that according to Lizhi News, recently, the People's Procuratorate of Huqiu District, Suzhou City, handled a virtual currency fraud case, with more than 700,000 victims nationwide and the amount involved reaching 160 million yuan. After deducting more than 97 million yuan in fees for free goods and recommended cashback, the suspect Fang actually made a profit of about 69 million yuan. It is reported that the fraud project is called "Global Coin", which falsely claims that the virtual currency is launched by a Hong Kong group using the latest blockchain technology, and can be converted into RMB at a certain ratio once it is listed. Among them, the "membership model" is the "magic weapon for winning". Only by becoming a more advanced member can you have more Global Coins and mining machines with greater production capacity to produce Global Coins. At the same time, members can develop downlines to earn rebates.

During the prosecution stage, Fang and his defense lawyer proposed that his actions were mainly for the purpose of selling goods, and the cost of membership upgrade was the price of rice, cooking oil and other commodities, and Global Coin, mining machine and other items were just "game props" given as gifts. After review, the People's Procuratorate of Huqiu District, Suzhou City, believed that the criminal suspect Fang fabricated that Global Coin could be listed for trading, deceived the victim into spending money to upgrade his membership to obtain Global Coin, and caused the victim to have the wrong understanding that Global Coin could be listed for trading and profit from it, and then disposed of property and caused losses, which met the constituent elements of the crime of fraud; regarding the paid gifts of oil, rice and other items, from the perspective of the transaction purpose, the victim disposed of property for the purpose of obtaining Global Coin, not to purchase the above items; from the perspective of the payment process, the victim decided to upgrade his membership based on the defendant's deception, and the gift selection interface popped up only after the decision to upgrade, and the payment amount had nothing to do with the selection of goods, and the two parties did not negotiate or bargain on the purchase of goods in advance, which did not meet the characteristics of commodity transactions. In summary, it should be characterized as fraud.

After the incident, the police promptly froze more than 50 million yuan in Fang's account. At the same time, the public security organs also seized the ten properties he purchased with the illegal proceeds. Recently, the court sentenced Fang to 13 years and six months in prison for fraud and fined him 3 million yuan. At present, the public security, procuratorial and judicial organs have established a property disposal team, and the compensation work is being carried out in an orderly manner.