ChainCatcher news, according to the Legal Daily, the Economic Crime Investigation Team of the Beijing Municipal Public Security Bureau has publicly reported that recently, the police dismantled a gang that organized and led pyramid selling activities under the guise of investing in virtual collectibles. The case involves over a hundred participants in the pyramid scheme, with an amount involved exceeding 2.8 million USD. The police remind that any activity that requires payment of an "entry fee" under the guise of investment, encourages recruitment of new members, and uses the number of people developed as a basis for compensation is a disguise for pyramid schemes. The general public should recognize the essence of pyramid schemes and enhance their awareness of prevention.According to police investigations, the pyramid scheme organization introduced "game rules" to the public through on-site lectures and WeChat group messages, attracting unspecified individuals to recharge and purchase under the pretext of investing in virtual collectibles, thereby earning profits and causing financial losses to many. Through the analysis and connection of police reports across the city, the police believe that this investment project is suspected of organizing and leading pyramid selling activities.Upon investigation, it was found that the organization had a complete member registration rule, and its profit-sharing model was divided into dynamic and static types. After participants recharge, they settle using virtual currency to obtain "static dividends." In addition, members can also obtain "dynamic dividends" by developing downlines, i.e., through the "recruitment" method.The police remind that some criminals turn "digital collectibles" and "virtual currency" into their own "wealth codes," using the concept and technology of the digital economy as a disguise to engage in illegal fundraising and other criminal activities. They attract investments and defraud money by boasting, exaggerating their value, or creating worthless "pseudo-coins." The general public should remain vigilant in their daily lives and avoid falling victim to scams.

ChainCatcher news, the Beijing Municipal Public Security Bureau has dismantled an underground money laundering gang that conducted money laundering crimes through virtual currency transactions. Currently, four main suspects involved in the case have been approved for arrest by the procuratorial authorities on suspicion of illegal business operations.According to investigations, the main member of the gang, Lv, obtained foreign nationality years ago. During his time abroad, he discovered that virtual currency transactions could transfer domestic RMB to overseas and exchange it for foreign currency. Later, Lv, along with Chen and others, used virtual currency trading platforms to assist domestic individuals intending to transfer funds in purchasing virtual currencies on a large scale, thereby transferring funds overseas, with the amount involved being approximately 800 million yuan. At the same time, the police found that this gang had provided funding channels and transferred illicit funds for multiple telecom fraud cases and embezzlement cases.

ChainCatcher news, according to CCTV News, Beijing police and the Beijing branch of the State Administration of Foreign Exchange have jointly cracked a series of cases involving virtual currency, with the amount involved exceeding 2 billion yuan, covering 15 provinces and cities including Beijing, Shanghai, and Zhejiang. It is noteworthy that this case not only involves a variety of concealed criminal methods but is also a "series of cases," ranging from dark web transactions to illegal foreign exchange trading, which is quite complex.It is reported that Beijing police previously received clues indicating that someone was using the "dark web" and virtual currency to transmit information and conduct virtual currency transactions, particularly the illegal sale of various personal information of Chinese citizens. In addition, the police discovered that the suspect Yan was conducting all transactions in the process of selling citizen information through virtual currency. The amount involved in the conversion of virtual currency to cash was particularly large, which also attracted the attention of the police.After in-depth investigation, the criminal facts of six members of the underground bank Lin and the suspect Yan, who illegally sold citizen information, gradually became clear. In December 2023, the police launched simultaneous operations in Wenzhou, Nanjing, Beijing, and Harbin, capturing all the suspects involved in the case. The police seized more than 20 electronic devices such as mobile phones engaged in illegal activities and over 30 bank cards on-site. After counting, the case involved funds exceeding 2 billion yuan, with more than a dozen virtual currency wallets used for illegal transactions.The Economic Crime Investigation Team of the Beijing Municipal Public Security Bureau stated that in China, activities related to virtual currency are considered illegal financial activities. Using virtual currency as a medium for cross-border transactions to achieve illegal exchanges between foreign currency and RMB constitutes illegal foreign exchange trading.