深潮 TechFlow
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Lawyer: Pi currency (Pi Network) may be suspected of pyramid scheme crime
According to Deep Tide TechFlow news on February 13, lawyer Liu Zhengyao from Heng Law Firm (Shanghai) published an analysis stating that after Pi currency (Pi Network) goes live on exchanges and opens secondary market trading, its promotional model may constitute a pyramid scheme crime as defined by Chinese criminal law. According to the analysis, Pi currency currently lacks real project support and adopts an invitation system to form hierarchical relationships; invitees can obtain benefits such as mining acceleration by developing lower-tier members.
It is worth noting that if Pi currency is acquired through developing lower-tier members and sold on exchanges, once the number of lower-tier levels exceeds three, the relevant organizers may face up to five years of fixed-term imprisonment and fines; if the amount involved exceeds 2.5 million yuan or the number of people developed exceeds 120, the prison term may extend to more than five years.
It is worth noting that if Pi currency is acquired through developing lower-tier members and sold on exchanges, once the number of lower-tier levels exceeds three, the relevant organizers may face up to five years of fixed-term imprisonment and fines; if the amount involved exceeds 2.5 million yuan or the number of people developed exceeds 120, the prison term may extend to more than five years.
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