TechFlow news — On February 25, according to the Guangzhou Daily, a recent virtual currency fraud case was concluded by courts in Guangdong. The defendant, Xie Moumou, established Company A and issued a cryptocurrency called "AA Chain," promising investors that the coin would be listed on exchanges and generate substantial returns.
The case revealed that in May 2018, Xie founded Company A in Guangdong and served as its legal representative. He promoted online that the "AA Coin" had significant appreciation potential and assured victims it would be listed for trading on exchanges with expected profits of no less than 5 million yuan. One investor consequently paid 990,000 yuan to purchase over 1.6 million AA Coins. However, the virtual currency received by the victim amounted to nothing but a string of meaningless numbers—these tokens remained locked and untradeable from the beginning.
The court determined that Xie Moumou had the intent of illegal possession, fabricated facts to defraud others of their property, and committed fraud on an especially large scale. He was ultimately convicted of fraud and sentenced to 11 years in prison, along with a fine of 50,000 yuan. The judgment has taken effect.
