The Shanghai No. 1 Intermediate People's Court concluded a criminal case involving digital collections: Transfer platforms should apply for business licenses in accordance with the law

Shanghai No. 1 Intermediate People's Court Concludes Criminal Case Involving Digital Collectibles: Transfer Platforms Should Obtain Business Licenses in Accordance with the Law. Golden Finance reports that the Shanghai No. 1 Intermediate People's Court (Shanghai No. 1 Intermediate People's Court) recently concluded a second-instance criminal case involving digital collectibles. Defendants Wang and others used a third-party blockchain company to "on-chain" digital collectibles generated by AI-generated underlying electronic images, illegally raising a substantial amount of funds through fraudulent means. Wang was sentenced to eight years and six months in prison and a fine of 550,000 yuan for fundraising fraud. The presiding judge of the second instance, Judge Gu Pingzhou, noted that the majority of digital collectible transfer platforms currently on the market are user-generated or illegally organized by certain small and medium-sized platforms. Platform operators should verify their qualifications with relevant regulatory authorities and industry associations before engaging in any business activities and obtain business licenses in accordance with the law.