TechFlow news, on August 17, according to the official account of the Shanghai First Intermediate People's Court (Shanghai First Court), the court recently concluded a second-instance criminal case involving digital collectibles. The defendant Wang Mou and others issued digital collectibles—whose underlying electronic images were AI-generated—via a third-party blockchain company by "going on-chain," and used fraudulent methods to illegally raise funds in a significant amount. Consequently, Wang was convicted of fundraising fraud and sentenced to eight years and six months in prison, along with a fine of 550,000 yuan.
In this case, Presiding Judge Gu Pingzhou pointed out that most digital collectible trading platforms currently existing in the market are either spontaneously formed by users or illegal trading venues organized by certain small and medium-sized platforms. Platform operators should verify their eligibility for access with relevant regulatory authorities or industry associations and legally obtain business licenses before engaging in any commercial activities.
