Shenzhen Intermediate People's Court announced a digital collectible fraud case

ChainCatcher news, the Shenzhen Intermediate People's Court announced a case. In June 2022, Chen registered Company A and developed Platform B to publicly sell a certain digital collectible without an ICP license (Internet Operating License) or any information service record, promoting the collectibles through WeChat public accounts and other channels as limited editions, claiming that investing in this digital collectible would guarantee profits. In July 2022, Platform B launched a certain digital collectible and used promotional phrases like "capital protection buyback, stable appreciation" to deceive investors, selling nearly 30,000 collectibles within a month. Subsequently, Chen opened secondary market trading and inflated transaction prices and market hype through account manipulation and hiring fake reviewers to gather funds. During this period, Chen cashed out over 900,000 yuan from the platform. From October to November 2022, Chen stopped renewing the server and shut down the platform, leaving users unable to withdraw funds or view their digital collectibles.

The court found that Chen fabricated facts and concealed the truth to defraud others of property, with the amount being particularly large, constituting the crime of fraud. Chen was sentenced to twelve years in prison for fraud and fined 55,000 yuan.