Fraud Through a Self-Made Virtual Currency Trading Platform: A Ruling by Pengshan District Court

04/14/2023 01:08 • Blockchain Buzz • 132 views

According to reports, the Pengshan District Court in Meishan City has ruled on a case of fraud committed through a self-made and false virtual currency trading platform. The defendant used the illegal operation of the “Shanda Contract” false virtual currency investment platform to lure customers into purchasing Taida Coin and exchanging it for the platform’s proprietary false virtual currency PTC, resulting in customers being deceived into 1443981 Taida Coin, equivalent to over 9.4 million RMB.

Meishan, Sichuan has cracked the “Shengda Contract” virtual currency fraud case, involving an amount of over 9.4 million yuan

The Pengshan District Court in Meishan City recently made headlines as it ruled on a significant case of fraud committed via a self-made virtual currency trading platform. The defendant used an illegal operation of the “Shanda Contract” false virtual currency investment platform, luring customers into purchasing Taida Coin and exchanging it for the platform’s proprietary false virtual currency PTC. This resulted in customers being deceived into 1443981 Taida Coin amounting to over 9.4 million RMB. The following article delves into the details of the case, highlighting the methods utilized by the defendant, the impact on the deceived customers, and the court’s ruling.

Background: The Fraudulent Self-Made Virtual Currency Trading Platform

The defendant in the case, whose name has not been publicly disclosed, operated the self-made and false virtual currency trading platform called “Shanda Contract.” Through this fraudulent platform, the defendant used a variety of methods to deceive customers, including promoting false virtual currency investment opportunities and misrepresenting the Taida Coin’s value.
To lure customers, the defendant offered enticing deals and claimed that Taida Coin could yield significant returns. Customers were convinced to purchase the coins with the belief that the value would continue to increase. However, in reality, the Taida Coins had no actual value and were used merely as a means to exchange and acquire the false virtual currency PTC on the Shanda Contract platform.

The Deception And Losses Faced By Customers

As a result of the defendant’s fraudulent practices, many customers suffered significant losses. Customers were deceived into believing that they could earn substantial returns by buying Taida Coin, and many invested heavily in this false virtual currency, assuming it had real value in the market.
However, when the customers attempted to sell the Taida Coin or use it to buy PTC on the platform, they found that the coins had no practical value. The deceived customers suffered significant financial losses, with some losing their entire investment.

The Court’s Ruling And Penalty

The Pengshan District Court in Meishan City’s ruling came after the victimized customers filed complaints against the defendant. The court found the defendant guilty of one count of fraudulent activity and ordered her to compensate the affected parties and pay a fine of 500,000 RMB. The court made it clear that engaging in any fraudulent virtual currency trading activity is a criminal offence and will not be tolerated.

Conclusion

The Pengshan District Court ruling on fraud through a self-made virtual currency trading platform is an essential development in the ongoing struggle against fraudulent activities in the virtual currency market. The case highlights the importance of being vigilant and researching thoroughly before investing in virtual currency, as fraudulent operators continue to deceive innocent people.

FAQs

1. What is virtual currency, and how does it work?
Virtual currency is a digital currency that uses cryptography to secure and verify transactions and control the creation of new units. It’s decentralized, meaning that it operates independently of a central bank and government, and its transactions are recorded on a public digital ledger known as a blockchain.
2. How can I identify fraudulent virtual currency platforms?
Fraudulent virtual currency platforms often use enticing deals or promise significant returns to lure customers. Always conduct proper research on the platform, read online reviews, and look for red flags such as anonymous leadership, lack of transparency, and a high degree of secrecy.
3. What should individuals do if they fall victim to virtual currency fraud?
If you fall victim to virtual currency fraud, contact the relevant authorities, report the crime, and seek legal and financial advice immediately.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/14660.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.