A post-00s college student issued Dogecoin and withdrew liquidity in seconds. He was sentenced to 4 years and 6 months in prison and fined 30,000 yuan for fraud

Yang Qichao, a college student born in the 2000s, issued "Dogcoin" BFF on BNBChain. He was found guilty of fraud by the People's Court of Nanyang High-tech Industrial Development Zone, Henan Province, for withdrawing liquidity, which caused others to lose 50,000 USDT. He was sentenced to 4 years and 6 months in prison and a fine of 30,000 yuan. On May 20, 2024, the case was heard in the second instance at the Nanyang Intermediate People's Court. Yang Qichao's defense lawyer still defended his innocence and believed that the virtual currency issued by the defendant Yang Qichao in this case has a unique and unalterable contract address, and there is no so-called "fake currency". The defendant and the reporter are both senior players in the currency circle and have a clear understanding of the risks of speculating on virtual currency. In addition, the platform allows liquidity to be added or withdrawn at any time, and the defendant's behavior does not violate the platform rules. The BFF coins held by the victim appreciated due to increased liquidity after the incident. If the transaction can be exchanged for more USDT coins than before, the victim will not suffer any losses. Yang Qichao, born in 2000, was a senior student about to graduate from a Zhejiang university before the incident. In early May 2022, he paid attention to a community autonomous organization called District Future DAO, which carried out preliminary publicity and warm-up for the issuance of decentralized virtual tokens. He created a token BFF with the same English name as District Future, adding 300,000 BSC-USD and 630,000 BFF liquidity. In the same second that Yang Qichao added liquidity, Luo spent 50,000 USDT to exchange for 85,316.72 BFFs. Just 24 seconds later, Yang Qichao withdrew the liquidity of BFF, resulting in Luo using 81,043 BFFs to exchange for only 21.6 USDT. When tracing the source, Luo found Yang Qichao through a common WeChat friend. Luo asked Yang Qichao to refund his losses, but was rejected. On May 3, 2022, Luo reported to the police that he had been defrauded of more than 300,000 yuan (converted to 50,000 USDT) by investing in virtual currency. Soon, the police filed a criminal case on suspicion of fraud and arrested Yang Qichao in Hangzhou, Zhejiang in November of that year. (The Paper)