Beijing cracks down on its first case of blockchain virtual currency-assisted pyramid scheme, imposing a heavy fine of over 930,000 yuan
2026-10-29 21:55:50
According to CoinMeta, the Haidian District Market Supervision Bureau in Beijing has handled the city's first case of illegal activities involving the use of blockchain and virtual currency technology to assist in pyramid schemes. The technology company involved was an outsourcing service provider for a public blockchain. The “Atomic Plan” and “Hathaway Plan” of this public blockchain were pyramid scheme projects that relied on recruiting new members to earn rebates, requiring participants to invest funds to qualify for membership. The public blockchain was investigated by the public security authorities according to the law, and all the organizers involved in the pyramid scheme have been criminally detained. Due to providing facilitation for these pyramid scheme activities, the technology company was fined a total of over 930,000 yuan in accordance with Article 26 of the “Regulations on Banning Pyramid Schemes.”
Source:CLS
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