Huo Xing Cai Jing reports that the Hebei Higher People’s Court released typical cases targeting illegal fundraising. A man promoted virtual commodity investment projects on the “Newmateworks” platform under the “Yishang United Community” brand by packaging them with the “metaverse” concept, luring the public to invest. He directly recruited 19 investors who deposited a total of RMB 15.3936 million on the platform, of which RMB 1.1014 million had been returned, leaving RMB 14.2922 million unrecovered. The court found that this case used emerging technological concepts such as the “metaverse” as a cover for fraudulent marketing, violating China’s financial management laws and regulations, with a substantial amount involved, constituting the crime of illegally absorbing public deposits. The defendant, Chen, was sentenced to five years and four months in prison and fined.
Man Sentenced to 5 Years and 4 Months for Fraudulent 'Metaverse' Investment Scheme in Hebei
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Summary
A man in Hebei was sentenced to five years and four months for operating a fraudulent “metaverse” investment scheme. Using the “Newmateworks” platform, he deceived 19 investors into depositing 15.3936 million yuan, of which only 1.1014 million yuan was recovered. The court determined the case involved anti-money laundering violations and illegal fundraising disguised as a new technology concept. The scheme disrupted liquidity and cryptocurrency markets by exploiting public interest in emerging digital assets. The defendant, Chen, was fined and ordered to repay the remaining 14.2922 million yuan.
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