In recent years, the sharp price fluctuation of virtual currency has aroused widespread concern. The legend of getting rich overnight has made many people begin to rent and buy equipment and devote themselves to "mining". Some people, under the pretext of selling computing power (the ability of mining equipment to dig out virtual currency), use "high yield and recommended rebate" as bait to lure victims to invest, develop offline, build MLM networks and obtain illegal profits. In 2018, Wang Shengguo, a university graduate who lives in Suzhou, turned his attention to virtual currency due to the recession of industrial companies starting businesses. In June of the same year, Wang Shengguo met several people at the blockchain forum. They were very optimistic about the development prospect of virtual currency, so they hit it off immediately. As a corporate legal person, Wang Shengguo jointly established a Miyun technology company (pseudonym). After the establishment of the company, its business mainly focused on "mining machinery". The so-called "mining machine" refers to the computer with large capacity hard disk and high-performance graphics card used to "dig" virtual currency. By selling "mining machines", the company then collects the profits from selling machines and the machine operation and maintenance fees entrusted by customers. Du Ziming (a pseudonym) in Shanghai is a developer of a new virtual currency P coin, especially partners with great computing power to promote P coin. In early 2019, Du Ziming led his project team to cooperate with Miyun company. Since then, Miyun company has basically stopped its external sales business. On the one hand, it provides Du Ziming's team with "Suanli" leasing services, and they resell Suanli "dig" P coins to the public for the second time. On the other hand, it assists in providing mining machine display, publicity site, equipment maintenance, etc. After a period of business contact, Wang Shengguo found that after Du Ziming's transfer to after-sales, the price increased five times. Why not sell computing power directly? Wang Shengguo began to think about more "business" content. After discussion with other shareholders, in July 2019, Wang Shengguo formally proposed the business model of external sales of computing power at the company's meeting: after registering the app account, users need to make a payment to Wang Shengguo's account through other platforms to obtain the "mining" computing power of P coins (for example, if you make a payment of 2000 yuan, you can obtain 1t computing power in the app and pledge 300 P coins), At the same time, it is promised that users can obtain static and dynamic benefits - static benefits, that is, return them to personal Miyun account in the form of P currency at a fixed rate of return of 1.1% per day, and return the principal for up to 3 months; Dynamic income is divided into recommendation award, management award and peer award. It is divided into 3-6 rebate ratios from high to low based on the number of direct development users, total investment in development users and total investment in peer users respectively, so as to encourage members to continuously develop new users. Although some people in the company have suggested that the promotion method is suspected of MLM, Wang Shengguo continued the business of "selling computing power" on the grounds that the company has no way out of debt and can drill the loophole of imperfect virtual currency legislation. In this way, through offline community publicity and circle of friends publicity, Miyun's business scale is becoming larger and larger. In addition to Suzhou, the team led by Wang Shengguo also continued to build Hangzhou community and Inner Mongolia community. At this time, due to technical problems, the background program of Du Ziming's team has not been written, and P coin has not been online. In fact, Miyun technology company has never actually "mined", but the participants are full of expectations. In March 2020, Suzhou police received a report from the public that Miyun technology company raised funds from unspecified objects. After investigation, it is found that since July 2019, Miyun technology company has started to rely on Miyun app in the name of selling "mining machine" computing power, requiring participants to obtain membership qualification by registering an account number and paying fees, forming a hierarchy in order, and directly or indirectly using the number of developing members and the number of purchasing computing power as the basis for rebate calculation to lure participants to continue to develop others to participate, Defraud property and disrupt economic and social order. According to statistics, there are at least 5 levels of registered members in Miyun app, with far more than 50 participants, more than 4500 registered accounts and 19 levels of cash. The total amount of MLM absorbed has reached more than 55 million yuan (converted according to p currency). Relevant managers have constituted the crime of organizing and leading MLM activities. On September 15 this year, the court ruled that six people including Wang Shengguo constituted the crime of organizing and leading MLM activities, sentenced them to fixed-term imprisonment of five years and three months to one year and four months, fined a certain amount of money, and recovered all illegal gains. In view of the large number and large amount of people involved in this case, and it is the first case of money network MLM in Suzhou Industrial Park, on the one hand, the people's Procuratorate of Suzhou Industrial Park actively guides the public security investigation and gives suggestions on electronic evidence collection and data analysis, on the other hand, introduces professional institutions to organize the appraisal of the company's virtual currency value and the number of member accounts, so as to find out the company's operation, And determine the level and amount of crime, and clarify the charges of the case. Recently, the people's Bank of China and other departments issued the notice on further preventing and dealing with the risk of speculation in virtual currency transactions. The notice makes it clear that virtual currency does not have the same legal status as legal currency, and the business activities related to virtual currency belong to illegal financial activities. The case handling prosecutor of the people's Procuratorate of Suzhou Industrial Park suggested that investors should be vigilant against all kinds of scams of illegal fund-raising, MLM and fraud in the name of virtual currency, not blindly believe in the promise of high yield, and establish a correct concept of money and finance. (Xinhua News Agency)