TechFlow news, on February 18, according to the "Shanghai Procuratorate" official account, the Jinshan District Court of Shanghai recently issued a ruling on a digital collectibles fraud case. Two suspects built a digital collectibles trading platform and packaged low-cost AI-generated images as investment-worthy digital collectibles for sale.
The suspects attracted investors by fabricating overseas identities and promising principal-protected buyback arrangements, while creating a false impression of active trading in the secondary market through self-purchasing and self-selling. The case occurred between October and December 2023, causing losses of approximately 1.8 million yuan to investors.
In January 2025, after public prosecution by the Jinshan District People's Procuratorate of Shanghai, the two suspects were sentenced by the court for the crime of fundraising fraud.
