Blockchain is a new technology and it is not a disguised pyramid scheme. It is just claimed by many MLM organizations as "blockchain". In fact, it does not have any technology. It is just a pyramid scheme in the name of "blockchain". The state

Announcements have been issued many times to crack down on this kind of pyramid schemes.

The following is Xinhuanet’s report on blockchain pyramid schemes: Blockchain is not equivalent to virtual currency, and there are also security risks. Behind the popularity, there are exaggerated publicity campaigns with “ulterior motives.”

Only by removing the flashiness can the blockchain return to its true application value.

Invest 80,000 yuan and it will become 800,000 yuan in three months?

Shenzhen police uncovered a huge fund-raising fraud case.

Under the guise of blockchain concepts and 10 times earnings, thousands of investors have fallen deeply into it, with the amount involved reaching 307 million yuan.

Under the "mysterious veil" of the blockchain, criminals have taken advantage of the opportunity to use their tricks, and the blockchain has become a "signature" for economic crimes such as fraud and pyramid schemes.

Why is the blockchain repeatedly "misused" by illegal activities such as pyramid schemes and scams?

Apart from being “unclear”, what is the “function” of blockchain technology itself?

Since the beginning of this year, with the increased supervision and the cooling of the currency speculation trend, new opportunities have been brought to the development of blockchain. How is the implementation of blockchain commercial "applications" now?

Reporters from "Lookout" News Weekly recently conducted an investigation into this.

When the three-month "fund release period" promised by the trading platform expired and the staff started "kicking" people in the QQ group, Tang Haiyan, who lives in Bao'an District, Shenzhen, realized that she might have been cheated.

Previously, Tang Haiyan invested 80,000 yuan to buy a virtual currency called "Puyin Coin" under the introduction of a classmate.

"The other party said that this currency is the most advanced blockchain technology at the moment, with Tibetan tea as collateral, and he also showed me a 'technical white paper'. I didn't understand blockchain, so I didn't read it carefully." Although for blockchain

Tang Haiyan didn’t know much about blockchain or virtual currency, but the high investment returns made Tang Haiyan full of expectations.

She told reporters that the company that issued the "Common Silver Coin" would regularly split the virtual currency at a ratio of 1:10, which means that each split would increase the value of the "Common Silver Coin" in the hands of investors by 10 times.

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As long as it is split once, the 80,000 yuan she invested is equivalent to buying "common silver coins" worth 800,000 yuan, and she can get huge profits by selling them on the trading platform.

According to the rules of the trading platform, the "common silver coins" just purchased cannot be traded immediately and must be frozen on the platform for three months before the "release period" can begin.

However, when three months passed, Tang Haiyan not only failed to double her assets, but also the 80,000 yuan frozen on the platform could no longer be used for transactions.

"Other investors began to question the authenticity of this investment in the QQ group. As a result, the company staff kicked these investors out one by one, which made me feel bad," she said.

Facts also proved Tang Haiyan's intuition.

At the end of March 2018, Shenzhen police uncovered a huge fund-raising fraud case, with the amount of fraudulent funds reaching 307 million yuan.

In this case, the Shenzhen Puyin Blockchain Group Co., Ltd. involved in the case used the "blockchain + Tibetan Tea" model to issue virtual currency and defraud public deposits. Tang Haiyan was one of thousands of victims.

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An investigation by the Shenzhen police found that the company claimed that investors could trade "common silver coins" on the virtual trading platform "Jubi.com" to earn the price difference.

In fact, the changes in its buying and selling price were caused by the company using investors' investment funds to perform behind-the-scenes operations, and once raised the price of "common silver coins" from 0.5 yuan to 10 yuan, allowing investors to taste some sweetness.

When a large number of investors entered the market, the company continued to cash out by maliciously manipulating the price trend of "Common Silver Coins", which eventually resulted in the "Common Silver Coins" in the hands of investors being worthless.

Since 2018, engaging in fraud and pyramid schemes under the banner of blockchain has become a commonly used "routine" in new criminal methods.

In April 2018, Jinan police busted a pyramid scheme gang under the guise of "western development", "national poverty alleviation", "original stocks", "blockchain" and "e-commerce", arrested more than ten main suspects, and froze the funds involved in the case

There were more than 100 accounts, and more than 300 million yuan of funds involved were seized.

According to Jinan police, Huileyi E-commerce Company designed fake virtual disks on the Internet and released various virtual currencies such as so-called "treasure coins" and "precious coins" on the grounds that the country is vigorously developing the big data industry.

They first use the gift as a guise to give a certain amount of virtual currency to newly joined MLM personnel, with the price of each coin being tens of yuan, and then through artificial manipulation, the virtual currency will increase in value to more than 100 yuan or even hundreds of yuan, attracting people who do not know the truth.

Join, and finally "cut leeks" through the cyclical fluctuations of the so-called "devaluation" of virtual currencies, repeated over and over again, and ultimately achieve the purpose of seeking illegal benefits.

In Xi'an, the local police also successfully cracked a huge online pyramid scheme under the banner of blockchain.