【Beijing’s first! Blockchain contractor fined and ordered to forfeit over ¥930,000 for assisting a pyramid scheme】
According to Jingbao.com, the Haidian District Market Regulation Bureau in Beijing recently investigated the city’s first case involving the use of blockchain and virtual currency technology to assist pyramid scheme activities. The technology company involved was an outsourced service provider for a public blockchain. The “Atomic Plan” and “Hathaway Plan” it supported centered on recruiting people in exchange for rebates, and required participants to invest money to qualify for membership—hallmarks of typical pyramid schemes.
Notably, the project operators were not the only ones penalized. The technology company was ordered to forfeit its illegal gains and pay a fine, totaling more than ¥930,000, for facilitating pyramid scheme activities.
This should serve as a warning to blockchain technology service providers: writing code, providing maintenance, or building systems does not mean you can avoid liability simply by claiming “technology neutrality.” If a project clearly relies on entry fees, tiered rebates, and recruiting downline members to operate, continuing to provide development, promotional, or payment-channel support may cross the legal line.
Blockchain is no shield for illegal activity, and virtual currency is no disguise for pyramid schemes. Ordinary users should be especially wary of projects promising “high returns + recruiting newcomers + upfront investment.” #区块链监管 #虚拟货币 #AntiFraud
According to Jingbao.com, the Haidian District Market Regulation Bureau in Beijing recently investigated the city’s first case involving the use of blockchain and virtual currency technology to assist pyramid scheme activities. The technology company involved was an outsourced service provider for a public blockchain. The “Atomic Plan” and “Hathaway Plan” it supported centered on recruiting people in exchange for rebates, and required participants to invest money to qualify for membership—hallmarks of typical pyramid schemes.
Notably, the project operators were not the only ones penalized. The technology company was ordered to forfeit its illegal gains and pay a fine, totaling more than ¥930,000, for facilitating pyramid scheme activities.
This should serve as a warning to blockchain technology service providers: writing code, providing maintenance, or building systems does not mean you can avoid liability simply by claiming “technology neutrality.” If a project clearly relies on entry fees, tiered rebates, and recruiting downline members to operate, continuing to provide development, promotional, or payment-channel support may cross the legal line.
Blockchain is no shield for illegal activity, and virtual currency is no disguise for pyramid schemes. Ordinary users should be especially wary of projects promising “high returns + recruiting newcomers + upfront investment.” #区块链监管 #虚拟货币 #AntiFraud