Beijing investigates and penalizes the first new type of blockchain virtual currency-assisted pyramid scheme case, imposing a heavy fine of over 930,000 yuan.

Recently, the Market Supervision Administration of Haidian District, Beijing, investigated and handled the city's first illegal case involving the use of blockchain and virtual currency technology to provide assistance to pyramid scheme activities. The technology company involved served as an outsourced service provider for a certain public chain. The "Atomic Plan" and "Hathaway Plan" of this public chain were pyramid scheme projects centered on the model of recruiting people for rebates, requiring participants to obtain eligibility to join by investing funds. The public chain was investigated and handled in accordance with the law by public security authorities, and all the pyramid scheme organizers involved have been criminally detained. The technology company involved should have subjectively known that pyramid scheme applications existed on the public chain. In accordance with Article 26 of the Regulations on Prohibiting Pyramid Schemes, the technology company involved was fined and had illegal gains confiscated totaling more than 930,000 yuan because it provided convenient conditions for pyramid scheme conduct in pyramid scheme activities.