On November 9, Yunnan Provincial People’s Procuratorate announced that the case of Li Moumou and 10 people organizing and leading pyramid schemes was prosecuted by the Shidian County Procuratorate. After trial, the court sentenced the 10 defendants, including Li Moumou, to prison terms of six years to two years and fines ranging from RMB 500,000 to RMB 100,000 for the crime of organizing and leading pyramid schemes.
In May 2021, Li Moumou and others used blockchain and virtual currency as a pretext to amass illegal profits. They set up five fund pools on an online platform, promoted the reward system and profit prospects with various slogans, and tricked the public into participating. The group ultimately collected more than RMB 210 million through the online platform.
The Shidian County Procuratorate found that Li Moumou and the other nine defendants used virtual currencies and online platforms to defraud property and disrupt the economic and social order. The accumulated pyramid scheme funds amounted to more than 210 million yuan, violating Article 224-1 of the Criminal Law of the People’s Republic of China and constituting the crime of organizing and leading pyramid schemes.
The court ruled accordingly after the trial.
