TechFlow news — According to the Procuratorial Daily, the first-instance verdict in the PlusToken cyber传销 case, prosecuted by the Yancheng Economic & Technological Development Zone People's Procuratorate in Jiangsu Province, has been announced: The court sentenced defendants Chen Mou, Ding Mou, Peng Mou, and 13 others to fixed-term imprisonment ranging from two to eleven years for organizing and leading pyramid scheme activities, along with fines. Illicit assets, proceeds including interest, and tools used in the commission of crimes have been confiscated and turned over to the state treasury.
Police investigations revealed that from May 2018 to June 2019, Chen Mou, Ding Mou, Peng Mou, and others operated the PlusToken platform, recruiting over 2 million members. In addition to domestic participants, many were based overseas, forming more than 3,000 hierarchical levels. Within one year, the platform amassed approximately 9.48 million units of digital currencies such as Bitcoin and Ethereum, valued at over 50 billion RMB based on market prices at the time. Most of these cryptocurrencies were distributed as referral bonuses to members, while some were cashed out to fund Chen, Ding, Peng, and others' personal expenses and lavish lifestyles. The group disguised the platform as a multinational enterprise. Notably, Peng had prior convictions related to传销activities and extensive experience in promoting pyramid schemes, while Ding was well-connected and recognized in the blockchain sector, possessing technical expertise in blockchain technology.
