Blockchain, known as one of the most popular investment hotspots in recent years. However, there are some unscrupulous individuals who use the banner of ‘blockchain’ to illegally absorb funds through the issuance of so-called ‘Online casino and How to find it’ and other means.

　　For example, the ‘Radar Wallet’ website in Guangzhou.

　　On August 31st, the 12309 China Procuratorial Network published a lawsuit, disclosing the details of the illegal fund-raising by the ‘Radar Wallet’ website.

　　This lawsuit was issued by the People’s Procuratorate of Zengcheng District, Guangzhou City, Guangdong Province, involving three defendants who are all founders of the ‘Radar Wallet’. They not only defrauded through the issuance of ‘Online casino and How to find it’, but also set up investment return websites to illegally absorb funds, and were eventually sued for fund-raising fraud.

　　Investigations have shown that from September 2017 to June 2018, defendants Guo Bobing, Luo Jiajun, Shen Moumou, and co-conspirators Wang Moujia, Zheng Moumou, Wang Mouyi, and Huang Moumou (all separately dealt with) took the name of promoting the culture of Leizu and creating the Leizu Phoenix商城, used high yields as an incentive, attracted public funds, and set up an investment return website.

　　After investors registered an account on the investment return website, they paid the investment amount to Zheng Moumou and others in cash, card payment, bank transfer, Alipay transfer, and WeChat transfer. Their accounts had a daily cash withdrawal points and shopping points return of 0.6% of the investment amount, and cash withdrawal points could be exchanged for cash and withdrawn to the investor’s linked bank account, with approximately 11% of the handling fee deducted for cash withdrawal. Wang Moujia and others promised investors that after the official launch of the Leizu Phoenix商城, shopping points could be used for shopping at the Leizu Phoenix商城.

　　At the end of 2017, Wang Moujia claimed to members that he had introduced the blockchain Online casino and How to find it ‘LBC coin’ from the United States and started to urge investors to register on the Radar Wallet website (URL: rararlab.org) as members from March 2018, claiming that they could trade ‘LBC coin’ on the Radar Wallet website in the future, and claiming that ‘LBC coin’ could appreciate 50 to 100 times within a year.

　　On April 13, 2018, Wang Moujia and others held a blockchain release event at the ‘1978 Town’ in Zengjiang Street, Chenzhou District, with about 400 investors in attendanceonline lottery online online casinoJoin us. Wang Moujia took the stage to introduce the appreciation potential and development prospects of ‘LBC coin’, encouraging investors to buy ‘LBC coin’.

　　In mid-May 2018, Wang Moujia and others reduced the returns of the investment return platform, from the original 0.6% per day to 0.1%, at the same time, investors could recharge and purchase ‘LBC coins’ on the Radar Wallet website or its mobile APP ‘Leilei Wallet’. Wang Mouyi and others took advantage of this opportunity to urge investors to buy ‘LBC coins’, claiming that there would be a return of several tens of times within a year.

　　From mid-May 2018 to the end of June 2018, the price of ‘LBC coin’ skyrocketed from about 2 yuan at the time of listing to 3.2 yuan and then plummeted to 0.02 yuan per coin. After that, defendants Guo Bobing, Luo Jiajun, Shen Moumou, and co-conspirators Wang Moujia, Zheng Moumou, Wang Mouyi, and Huang Moumou disappeared without a trace.sports betting tutorial and Latest Address

　　By the time of the incident, Guo Mouping, Luo Moujun, and Shen Moumou, along with Wang Mou, Zheng Moumou, Wang Moumou, and Huang Moumou, used the name of promoting the culture of Leizu to operate investment return platforms and the ‘LBC coin’ business for fund-raising fraud, and defrauded nearly 7 million yuan in investment amounts.

　　After the incident, the defendants Guo Bobing and Luo Jiajun were apprehended in turn, and defendant Shen Moumou surrendered voluntarily.

　　The Chenzhou District People’s Procuratorate believes that Guo Mouping, Luo Moujun, and Shen Moumou ignored national laws, aimed at illegal possession, colluded with others to use fraudulent methods to illegally raise funds, with the amount being particularly large. Their criminal facts are clear, and the evidence is sufficient, and they should be prosecuted for the crime of fund-raising fraud.

　　Reminders

　　As early as August 24, 2018, the China Banking and Insurance Regulatory Commission, the Central Cyberspace Administration, the Ministry of Public Security, the People’s Bank of China, and the State Administration for Market Regulation jointly issued a notice to remind of the risks of illegal fund-raising under the name of ‘Online casino and How to find it’ and ‘blockchain’.

　　It is said that recently, some criminals use the banners of ‘financial innovation’ and ‘blockchain’ to absorb funds through the issuance of so-called ‘Online casino and How to find it’, ‘virtual assets’, ‘digital assets’, and other means, infringing upon the legitimate rights and interests of the public. Such activities are not truly based on blockchain technology but are hyping the blockchain concept to commit illegal fund-raising, pyramid selling, and fraud. The main characteristics are as follows:

　　The network and cross-border characteristics are evident. They rely on the Internet and communication tools for transactions, use online payment tools for fund inflow and outflow, and the risk affects a wide range and spreads quickly. Some criminals rent overseas servers to build websites, which are essentially aimed at residents within the country, and carry out illegal activities remotely. Some individuals claim in chat group that they have obtained investment quotas in overseas high-quality blockchain projects and can act as intermediaries for investment, which is very likely to be a fraudulent activity. These illegal activities mostly channel funds overseas, making supervision and traceability very difficult.

　　They are highly deceptive, tempting, and concealed. They use hot concepts for hype, fabricate a variety of ‘high-level and sophisticated’ theories, and some even use celebrities and KOLs to promote, using ‘airdrops’ of ‘candies’ as temptation, claiming that ‘the value of cryptocurrency only goes up and never down’, ‘short investment cycle, high returns, low risk’, with strong persuasive power. In actual operations, criminal elements illegally gain huge profits through means such as backstage manipulation of the price trend of online casinos and how to find them, setting profit and withdrawal thresholds, and other means. In addition, some criminals issue tokens under new names such as ICO, IFO, IEO, or use the flag of the sharing economy to hype online casinos and how to find them through the IMO method, which has strong concealment and deception.

　　There are various illegal risks. Criminal elements attract the public to invest capital through public propaganda, using ‘static returns’ (profit from cryptocurrency appreciation) and ‘dynamic returns’ (profit from developing subordinates) as bait, and entice investors to recruit personnel to join, continuously expanding the capital pool, with characteristics of illegal fund-raising, pyramid selling, fraud, and other illegal acts.

　　Such activities use the guise of ‘financial innovation’ but are essentially Ponzi schemes of ‘borrowing new to repay old’, and it is difficult to maintain capital operation in the long run. The general public should rationally view blockchain, not believe blindly in dazzling promises, establish correct currency and investment concepts, and enhance risk awareness; for clues of illegal activities, they can actively report to relevant departments.