TechFlow news, on September 19, according to Jimu News, the Zhongxiang City People's Procuratorate in Hubei Province recently issued a ruling on a major cryptocurrency传销 case. The main perpetrators, Chen Mou, Ding Moumou, and Fu Mou, were sentenced to three years in prison with a five-year reprieve and fined 350,000 yuan each for organizing and leading a pyramid scheme.
In February 2022, the three ringleaders developed and launched a cryptocurrency trading app, using investment in virtual currencies as a cover to establish a pyramid organization called "Moumou Community." The group extensively promoted itself through online platforms and offline training sessions, luring members into purchasing cryptocurrencies and recruiting subordinates. The organization was divided into five major regional divisions and 16 vanguard teams, operating under strict hierarchical management.
By December 2022 when the case broke, the group had amassed over 10,000 member accounts, reached up to 17 levels in hierarchy, and involved more than 57 million yuan in illicit funds. The three main suspects voluntarily returned all illegal gains amounting to over 22.59 million yuan. Prosecutors emphasized that virtual currencies do not have legal status equivalent to fiat money, and related business activities constitute illegal financial operations that will be strictly prohibited. The public is urged to stay vigilant against false promises such as "guaranteed profits," resist high-return temptations like "recruiting new members," and avoid falling into similar传销 traps.
