Shanghai Court in China Analyzes Criminal Liability in Virtual Currency "Money Mule" Telecom Fraud Case: May Constitute Accomplice to Fraud or Crime of Illegally Using Information Networks

BlockBeats News, August 18th: The Shanghai High People's Court of China released a typical case to analyze whether "traffic distribution personnel" in telecommunications network cryptocurrency fraud cases constitute accomplices to fraud. From February 2022 to April 2023, the defendant, for the purpose of profiting, assisted upstream fraudsters in "traffic distribution," guiding victims to join relevant fraud groups through a virtual phone software, ultimately leading to 30 victims being defrauded of over 2.34 million RMB (same below) by overseas fraud organizations. The overseas fraud groups transferred the money to the suspects' accounts using cryptocurrency. In this case, three defendants were convicted of fraud and sentenced to ten to thirteen years in prison.

The Shanghai First Intermediate People's Court pointed out that in telecommunications network fraud cases, "traffic distribution personnel" may be considered accomplices to fraud or may be charged with the crime of illegal use of information networks, depending on the specific circumstances. The key is to determine whether there is a clear intentional connection with the upstream fraud syndicate and whether there is a stable collaborative division of labor. In judicial practice, when determining the criminal responsibility of "traffic distribution personnel," factors such as their role in the criminal chain, the level of organizational management, their connection to upstream criminals, the method of profiting, and any abnormal behavior should be considered comprehensively. a). Distinctions should be made in the identification of behaviors that only provide general network services and behaviors that, with knowledge and participation, engage in fraudulent practices.