Shanghai Court Handles Digital Collection Fraud Case Involving Blockchain Technology

According to Foresight News, a recent case involving digital collection fraud was handled by the People's Court of Minhang District in Shanghai. The platform involved in the case, called 'Tonggu Platform', used blockchain technology to package low-cost purchased or freely downloaded images from the internet as digital collections for sale on the platform. The platform later stopped server renewal, causing users to be unable to withdraw funds or view their digital collections. Investigations revealed that the platform absorbed funds from thousands of users, totaling more than CNY 1.34 million (approximately USD 208,000), causing a total loss of over CNY 410,000 (approximately USD 63,000) for the victims. The individuals involved in the case were found to have used fraudulent methods for illegal fundraising with the purpose of illegal possession. The court convicted them of fundraising fraud, sentencing them to fixed-term imprisonment and imposing fines.