CoinVoice has recently learned that on July 25, according to a report by the Beijing News, the case of a core member of the blockchain project development and operation team suspected of organizing and leading pyramid selling activities was publicly tried in the People's Court of Xishan District, Wuxi City, Jiangsu Province yesterday. At the end of 2018, the defendants Liang, Wang, Chen and others formed a startup team and developed a public transaction chain based on blockchain technology. On June 18, 2019, in order to demonstrate the performance of the public chain and attract users to understand and use the public chain, Liang's team built the HUBDEX exchange on the public chain.

On June 18, 2020, the defendants Liang, Wang, Chen and others set up an invitation system for customers to determine the upper and lower levels, and each line can develop unlimited levels. HUBDEX Exchange set that after the lower-level customers pledged HUB coins (HUBDEX exchange tokens), the exchange would give rebates to the upper-level customers based on dynamic income and other reward methods, directly or indirectly based on the number of developed personnel and the purchase amount as the basis for rebates.

The prosecution alleged that Liang and others, without any actual business activities, used high rebates as bait to develop subordinate members to obtain dynamic returns and other benefits. Several defendants strengthened personnel management and training lecturers through the establishment of online communities and offline promotion meetings to attract investors to participate. As of the time of the incident, there were more than 50,000 registered accounts on the platform, with more than 100 levels, and the total amount involved was more than RMB 239 million.

The charges against the defendant in this case have been changed several times. When the case occurred on February 26, 2021, the Wuxi Public Security Bureau filed a case for investigation on the crime of illegal use of information networks; on August 6, 2021, the suspect was arrested on suspicion of organizing and leading pyramid schemes; on May 20, 2022, the Wuxi Xishan District Procuratorate filed a public prosecution on the crime of illegally absorbing public deposits and organizing and leading pyramid schemes; on March 22, 2023, the public prosecutor changed the charge to the crime of organizing and leading pyramid schemes. At present, the case is still under trial. [Original link]