On November 1, according to BlockBeats news, Shaanxi High Court issued a typical case about a self-constructed cryptocurrency trading platform that illegally collected public deposits. In June 2019, the defendants Shi and Zhu established a trading platform under the name CIC Shanquan Investment Fund Management Co., Ltd. through Shaanxi Silk Road Starting Point Network Technology Co., Ltd. after the company was registered in Xi’an’s High-tech Zone. During the operation, they held promotional events in major cities, claiming to offer lucrative investment opportunities in their newly created cryptocurrencies. Many locals were lured into investing, with the promise of higher interest rates and car usage rights. Investigation showed that the platform managed to con 114 individuals, accumulating 6.34 million yuan. By the time the case was reported, approximately 5.16 million of the funds were returned.
Following trial, the court issued a verdict stating that Shi and Zhu deliberately violated national financial regulation and disrupted the financial order by illegally absorbing public funds through their trading platform. Consequently, both defendants were sentenced to four years in prison and were also fined for illegally absorbing public deposits.