Shanghai prosecutors report on virtual currency fraud case: 8 people sentenced for inducing investors to fully leverage transactions

According to the Yangpu District Procuratorate in Shanghai, the procuratorate has disclosed a virtual currency fraud case. The case revealed that an eight-member fraud ring colluded with a virtual currency investment platform, posting low-price exchange information on social media to attract victims. They then impersonated "cryptocurrency experts" and sent fake profit screenshots to gain their trust. The ring induced victims to trade with full leverage on a designated platform and manipulated the market to cause margin calls, earning commissions from the platform based on the investors' losses. The case involved numerous individuals and involved significant amounts of money. In March 2025, the Yangpu District Procuratorate indicted Peng Moumou and eight others for fraud. Between April and May, the court sentenced them to prison terms ranging from one to five years and imposed fines. Prosecutors reminded that virtual currencies do not have the same legal status as legal tender, and related investment transactions are not protected by law. Investors should manage their finances through formal channels.