[Breaking News] According to ChainCatcher, the Economic Investigation Brigade of the Kunming Municipal Public Security Bureau successfully cracked a new type of online pyramid scheme crime case in November 2023, which used virtual currency and blockchain concepts as carriers. It is reported that since 2022, the criminal suspect Li and others have established a community on a public chain on the Internet, using "virtual currency can be pledged to obtain mining income" and "developing downline pledge virtual currency mining can obtain a lot of income" as bait, claiming that each level of players can get management rewards of 2% to 30% of the direct downline income.

As of April 2023, the criminal gang has developed more than 10,000 members, forming a 15-level criminal organization, and the funds involved in the case have reached more than 280 million yuan. At present, 15 criminal suspects have been arrested in the case, 8 have been approved for arrest, and 11 have been transferred for review and prosecution. This case warns the public that they must be cautious about investing in the blockchain and virtual currency fields to avoid falling into illegal activities.