The Shanghai court in China has concluded a digital collectible fraud case, and the main culprit has been sentenced to eight and a half years in prison.

By: theblockbeats.news|2025/08/17 12:42:03
0
Share
copy

BlockBeats News, August 17th. According to the official WeChat account of the First Intermediate People's Court of Shanghai (Shanghai No. 1 Court), the court recently concluded a second-instance criminal case involving digital collectibles. The defendants Wang and Liu, under the guise of operating a digital collectibles platform, issued digital collectibles whose underlying electronic images were generated by AI, falsely promoting the appreciation prospects of the aforementioned digital collectibles and promising a "50% off" guaranteed return of principal. The court ruled that Wang and Liu were guilty of fund-raising fraud and sentenced them to eight years and six months, and seven years and two months of imprisonment, respectively.

In October to December 2023, Wang and Liu registered a technology company in Shanghai, focusing on a digital collectibles platform. During this period, Wang and Liu used the platform and WeChat groups to publicly promote the sale of digital collectibles to the general public. They released a total of 7,888 to 16,888 copies of the digital collectibles at prices ranging from 9.9 yuan to 69.9 yuan. By controlling the trading volume and price of secondary market collectibles through self-buying and selling, they created the illusion of active trading. When victims were unable to trade the collectibles and requested refunds, they would block the victims.

After trial, the Shanghai No. 1 Court held that the technology company involved in the case operated a digital collectibles platform without obtaining the necessary administrative license. The digital collectibles in question lacked support from cultural and artistic creation activities, and the selling prices deviated significantly from their value, violating market rules. The "on-chain services" provided by the platform also lacked significant value. Wang and Liu's actions were not essentially selling goods but deceiving victims of their investment under the guise of operating a digital collectibles platform, exhibiting characteristics of illegality, publicity, inducement, and social impact, and should be deemed as illegal fund-raising. In addition, Wang and Liu, with the aim of illegal possession, unlawfully raised funds using fraudulent means, with a substantial amount involved, constituting the crime of fund-raising fraud.

-- Price

--

You may also like

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion

Overview of Important Market Events on June 25

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework

Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Why do cryptocurrency projects always like to change their names?

In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet

The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...

Who is footing the bill for the $64 billion accounting frenzy?

Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.

I never expected that the first application of AI x Crypto would be in security auditing

AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com