Beijing Police Dismantle Virtual Collectible Investment Pyramid Scheme, Case Value Exceeds $2.8 Million
Publication Time:2024-09-13 19:12:10
The Economic Crime Investigation Corps of the Beijing Municipal Public Security Bureau announced that they have dismantled a pyramid scheme known as the 'Virtual Collectible Investment' group. This operation involved over a hundred pyramid scheme participants and accumulated a case value exceeding $2.8 million. The police warned the public that any activity that requires an entry fee under the guise of investment and encourages recruiting new members while rewarding based on the number of people recruited is actually a disguised form of pyramid scheme. They urge the public to enhance their awareness of prevention to avoid falling into such traps. The investigation revealed that this pyramid organization used methods such as on-site lectures and mass messages in WeChat groups to introduce what they called 'rules of the game.' By luring the public with the promise of virtual collectible investments, they attracted unspecified individuals to recharge and purchase, thereby seeking illicit profits and causing property losses for many people. The police further pointed out that the organization had clear membership registration rules, and its dividend model was divided into static and dynamic forms. Participants could earn 'static dividends' by recharging and receive 'dynamic dividends' by developing new members. The police warned that some unscrupulous individuals were attempting to turn 'digital collectibles' and 'virtual currencies' into tools for illegal fundraising through false promotions and fabricated values, luring investors to fall for scams and lose their money. The police urged the public to stay highly vigilant in daily life and avoid becoming victims of such fraud.
Pyramid Scheme
Beijing Police
virtual collectible investment
case value
police notification