Post-00s college students were sentenced to 4 years and 6 months in prison for fraud after withdrawing liquidity from the virtual currency they issued

ChainCatcher news, according to a report by The Paper, "post-00s" college student Yang Qichao issued a virtual currency abbreviated as BFF on an overseas public blockchain, and faced imprisonment due to withdrawing liquidity. The prosecution accused him of issuing fake virtual currency, misleading others to recharge 50,000 USDT, after which Yang Qichao quickly "withdrew funds," resulting in a loss of 50,000 USDT for others, constituting the crime of fraud.

On February 20, 2024, the People's Court of the Nanyang High-tech Industrial Development Zone in Henan found Yang Qichao guilty of fraud, sentencing him to 4 years and 6 months in prison and imposing a fine of 30,000 yuan. On May 20, 2024, the case was heard in the second instance at the Nanyang Intermediate People's Court. Yang Qichao's defense lawyer continued to plead not guilty, arguing that the virtual currency issued by the defendant Yang Qichao has a unique and unalterable contract address, and there is no so-called "fake currency." Both the defendant and the complainant are experienced players in the cryptocurrency space and have a clear understanding of the risks involved in speculating on virtual currencies.

The defendant's lawyer stated that the platform allows for the addition or withdrawal of liquidity at any time, and the defendant's actions do not violate platform rules. Furthermore, the BFF held by the victim appreciated in value due to increased liquidity after the incident, and if traded, it could be exchanged for more USDT than before, indicating that the victim did not incur any losses.