Legal Prosecution Filed Against “Ubank” Virtual Currency Trading Platform
According to reports, the Xinyi City Procuratorate of Jiangsu Province has filed a legal prosecution against the case of \”Ubank\” virtual currency fund trading platform, which is fu
According to reports, the Xinyi City Procuratorate of Jiangsu Province has filed a legal prosecution against the case of “Ubank” virtual currency fund trading platform, which is fully known as the “Ubank” virtual currency trading platform, on suspicion of organizing and leading pyramid selling activities. During the handling of the case, it was found that the platform team registered more than 100000 users, involving more than 10 billion yuan in pyramid selling transactions. The court handed down a guilty verdict in the first instance, and 33 defendants were each sentenced to fixed-term imprisonment ranging from two to six years. Due to the defendant’s appeal, the case is currently being tried in the second instance. (Issued by Xuzhou Procurator)
The Xinyi City Procuratorate has filed a legal prosecution against the case of “Ubank” virtual currency fund tray involving pyramid selling transactions exceeding 10 billion yuan
The Xinyi City Procuratorate of Jiangsu Province has recently filed a legal prosecution against the “Ubank” virtual currency fund trading platform on suspicion of organizing and leading pyramid selling activities. According to reports, during the handling of the case, it was found that the platform team registered more than 100,000 users and was involved in more than 10 billion yuan in pyramid selling transactions. The court in the first instance handed down a guilty verdict, and 33 defendants were each sentenced to fixed-term imprisonment ranging from two to six years. Currently, the case is being tried in the second instance.
What is the Ubank Virtual Currency Trading Platform?
The Ubank virtual currency trading platform is a Chinese cryptocurrency exchange founded in 2016. The platform offers trading services for Bitcoin, Ethereum, Litecoin, and other cryptocurrencies.
The Pyramid Selling Scheme
According to the Xinyi City Procuratorate, the Ubank virtual currency trading platform was involved in a pyramid selling scheme. A pyramid selling scheme is a fraudulent business model where an individual or a group of individuals recruit other people to form a “pyramid” structure. New recruits are required to pay money to join the scheme, which is shared among those at the top of the pyramid. The recruits are then expected to recruit further members to the scheme, and the process continues.
In the case of Ubank, the scheme involved the promotion of a virtual currency fund investment program. Users were encouraged to invite their friends and relatives to join the platform and to invest in the fund. They were promised a return on investment and were also incentivized to invite more users to join.
The Prosecution’s Case Against Ubank
The Xinyi City Procuratorate’s case against Ubank centers on the fact that the platform allegedly operated a pyramid selling scheme in violation of Chinese law. According to the country’s Multi-Level Marketing Regulation, pyramid selling is illegal under Chinese law.
The prosecution also alleges that Ubank misled its users by promising high returns on their investment in the fund. The platform failed to deliver the returns, and investors lost their money.
The Guilty Verdict
In the first instance, the court found the defendants guilty of organizing and leading a pyramid selling scheme. The defendants were also ordered to pay fines ranging from 200,000 yuan to 5 million yuan.
The court held that Ubank’s business model was a pyramid selling scheme and that the platform’s management was aware of the illegal nature of the scheme. The court held that Ubank’s management team actively promoted and expanded the pyramid scheme, encouraging users to invite others to join the platform and to invest in the fund.
The Appeal and Second Instance Trial
After the guilty verdict, the defendants appealed the court’s decision. The case is currently being tried in the second instance.
During the second instance trial, the defendants have contested the prosecution’s case, arguing that the Ubank platform did not operate a pyramid selling scheme. The defendants also claim that they were not aware of any illegal activity taking place on the platform.
Conclusion
The Ubank virtual currency trading platform is facing legal prosecution in China for allegedly operating a pyramid selling scheme. The prosecution alleges that the platform’s management promoted and expanded the illegal scheme, which involved the promotion of a virtual currency fund investment program. The court in the first instance found the defendants guilty and handed down prison sentences ranging from two to six years. The case is currently being tried in the second instance.
FAQs
Q: What is a pyramid selling scheme?
A: A pyramid selling scheme is a fraudulent business model where an individual or a group of individuals recruit other people to form a “pyramid” structure. New recruits are required to pay money to join the scheme, which is shared among those at the top of the pyramid.
Q: What is the Ubank virtual currency trading platform?
A: The Ubank virtual currency trading platform is a Chinese cryptocurrency exchange founded in 2016. The platform offers trading services for Bitcoin, Ethereum, Litecoin, and other cryptocurrencies.
Q: What is the punishment for operating a pyramid selling scheme in China?
A: Pyramid selling is illegal under Chinese law. Those found guilty of operating a pyramid selling scheme can face imprisonment and fines.
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