Four Dem Sentenced for Crypto Play-to-Earn Pyramid Scheme
China authorities don sentence four people go jail and fine dem because of organizing crypto “play-to-earn” pyramid scheme. Prosecutors for Shishi, Fujian Province find say these people use virtual tokens and NFT kwik to hide multi-level marketing. Dem put level “threshold fees” as entry through token buying and private placements, build strict hierachy link rewards to recruitment, and dem no get real business waka. Second trial appeal no pass for July 2025, e confirm first judgement. This case show how regulators dey watch crypto scam well well and e warn traders make dem check project basics well and no fall Ponzi style model.
Neutral
Dis law ruling na aim am fraudulent crypto project no be mainstream token, so e no likely make big market moves for major cryptocurrencies. E show regulatory risk and fit help make confidence better by comot scam dem, but past crackdown on Ponzi schemes like dis no really affect main coin prices long-term. Short-term traders for small or new tokens fit dey cautious, but long-term market behavior suppose stable as regulation dey promote better integrity.