2023-08-15 18:48:00
Shenzhen Shikongyun Technology, one of the largest companies in Filecoin mining in China, is currently in turmoil. Recently, a Chinese court considered allegations that the company orchestrated an $83.3 million pyramid schemeinappropriately inducing users to mine coins through its platforms.
This case arises in the context of widespread repression of the crypto sector in Chinafollowing the banning of all crypto transactions in September 2021.
Shenzhen Shikongyun Technology: on trial for an alleged pyramid scheme
A Chinese court recently considered a case involving Shenzhen Shikongyun Technologya Filecoin mining company, along with four of its executives, for their alleged participation in an $83.3 million pyramid scheme.
Last Monday, the local court of Pingnan county, located in the autonomous region of Guangxi, has published on social networks that he had started the trial of Shenzhen Shikongyun Technology and its four leaders, including the founder named Lai. They are believed to have organized and directed activities under the pyramid scheme. The case is currently pending.
Source : mp.weixin
According to prosecutors, the defendants would have lured customers under the guise of mining FIL coins on the company’s platform. They allegedly required individuals to pay fees for the purchase of mining equipment or rental of mining machines in order to participate.
Prosecutors said:
“By promising large returns, they enticed more people to participate and deceived individuals into obtaining assets, thereby disrupting the economic and social order.”
Questionable Operations and Arrests: The Descent of Shenzhen Shikongyun
According to the information provided, the company had established the platforms filpool.io et bpool.io and had also built a website under the domain name ipfs.cn to improperly promote its services.
When Shenzhen Shikongyun was discovered by Chinese authorities in May 2022, the company had tens of thousands of users on its platforms. She had raised more than 606.95 million yuan (i.e. 83.3 million dollars) thanks to the filpool.io and bpool.io sites.
A former employee of Shenzhen Shikongyun revealed that the company is fully aware of the risks involved in doing business in China. Before arrest and detention of its leaders last year, it had even considered an international expansion. This informant chose to remain anonymous due to the sensitivity of the case.
Unlike neighboring Hong Kong, which actively develops the cryptocurrency and Web3 industriesChina banned all cryptocurrency transactions on the mainland in September 2021.
Source : The Block
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