ChainCatcher report: The Hebei Higher People's Court has released typical cases targeting illegal fundraising. A man promoted virtual product 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 has been returned, leaving RMB 14.2922 million unpaid. The court ruled that this case used emerging technological concepts such as the “metaverse” as a cover for fraudulent marketing, violating national 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 using the metaverse concept to illegally raise over 15 million RMB
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Summary
A man was sentenced to five years and four months for illegally raising over 15 million RMB through a virtual goods investment project using the metaverse concept. Authorities in Hebei’s CFT unit investigated the case, which involved the “Newmateworks” platform under the “Yishang United Community.” He deceived 19 investors, collecting 15.3936 million RMB, of which only 1.1014 million RMB was repaid. The court determined he violated financial regulations through fraudulent marketing. The case underscores the risks associated with liquidity and crypto markets tied to fraudulent schemes.
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