Mars Finance reported that the Shanghai First Intermediate People's Court (Shanghai No. 1 Intermediate People's Court) recently concluded a second-instance criminal case involving digital collectibles. Defendant 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 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 operating licenses in accordance with the law.

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