English Translation:

ChainCatcher News: According to Jimu News, the Zhongxiang City People's Procuratorate in Hubei Province recently issued a verdict in a major virtual currency pyramid scheme case. The main perpetrators, Chen, Ding, and Fu, were sentenced to three years in prison with a five-year suspended sentence for organizing and leading pyramid schemes. They were also each fined 350,000 yuan.

In February 2022, the three main perpetrators developed and launched a virtual currency trading APP, using the guise of investing in virtual currency to establish the "XXX Community" pyramid scheme. This organization used online platforms and offline training sessions to aggressively promote and induce members to purchase virtual currency and develop downstream members. The organization was divided into five major war zones and 16 pioneer teams, with strict hierarchical management.

By December 2022 when the case broke, the organization had developed over 10,000 member accounts, with the highest level reaching 17 layers. The total amount involved in the case reached over 57 million yuan. The three main perpetrators have voluntarily returned all their illegal gains, amounting to over 22.59 million yuan.

Prosecutors emphasized that virtual currencies do not have the same legal status as legal tender, and related business activities are illegal financial activities that will be strictly prohibited. The public should be vigilant and guard against false promises of "guaranteed profits" and resist high-interest inducements like "recruiting people." They should avoid falling into similar pyramid scheme traps.