Shenxian County Public Security in Shandong Province has cracked down on a virtual currency pyramid scheme and seized over 10 million yuan of illegal gains.

BlockBeats reported on October 8th that the Shandong Liaocheng Shenxian Public Security Bureau has cracked down on a virtual currency pyramid scheme, arresting six pyramid scheme leaders and core members and confiscating more than 10 million yuan in illegal gains. In 2022, police officers from the Shenxian Public Security Bureau discovered virtual currency pyramid scheme activities on BSC during network patrols. After repeated analysis and in-depth investigations, the project used the "token pocket" wallet and smart contracts to issue decentralized (no personnel registration information) encrypted currencies DCS and CAR, using high returns as a lure to encourage members to speculate on the prices of DCS and CAR, attract new members, and engage in pyramid scheme activities. The special case team used various measures and information technology to successfully identify the organizers, project promoters, and backend maintainers of the pyramid scheme.