Beijing police cracked down on a pyramid scheme gang that used virtual collections as an investment

The Economic Crime Investigation Team of the Beijing Municipal Public Security Bureau announced on September 9 that the police recently cracked down on a group that organized and led pyramid schemes in the name of investing in virtual collections. The case involved more than 100 pyramid scheme participants and the amount involved was more than 2.8 million US dollars. The police reminded that any activity that requires "entry fees" in the name of investment, encourages recruiting people, and uses the number of people developed as the basis for remuneration is a disguise of pyramid schemes. The general public should see through the essence of pyramid schemes and raise awareness of prevention. According to police investigation, the pyramid scheme organization in the above case introduced the "rules of the game" to the public through on-site lectures, WeChat group messages, etc., and attracted unspecified objects to recharge and purchase in the name of investing in virtual collections, earning profits from it, causing property losses to many people. Through the combination and analysis of police information in the city, the police believe that the investment project is suspected of organizing and leading pyramid schemes. After verification, the organization has complete membership registration rules, and its dividend model is divided into dynamic and static. After the participants recharge, they use virtual currency for settlement and obtain "static dividends." In addition, members can also obtain "dynamic dividends" by developing downlines, that is, "recruiting people". The police reminded that some criminals have turned "digital collections" and "virtual currencies" into their own "wealth codes", using digital economic concepts and technologies as a cover to engage in illegal fundraising and other criminal activities, and attract investment and defraud money by boasting, exaggerating their value or creating worthless "counterfeit currencies". The general public should be vigilant in life and not be deceived.