Recently, the Guangdong Provincial Higher People's Court made a ruling on a major Virtual Money fraud case, exposing a shocking eyewash. The main culprit, Xiong Moumou (41 years old), along with his accomplices, launched a Virtual Money called "CGC coin" through a meticulously designed "co-governance exchange" platform, promising investors a daily return rate of 3%, enticing them to purchase with USD.

This criminal gang manipulated backend data using technical means, faking trading volumes and price trends, creating false candlestick charts to confuse investors. Ultimately, they drove the value of CGC coin to nearly zero in October 2020, illegally seizing approximately 15 million USD, equivalent to as much as 107 million RMB.

It is worth noting that the technician Cai (28 years old), who participated in the development of the trading system, is also involved in the case. During the development process, he privately intercepted 12,000 USD, worth about 81,600 yuan. In addition, Cai also concealed 11,000 USD that was stranded due to a system failure.

The court sentenced the principal offender Xiong to 15 years of fixed-term imprisonment for the crime of fundraising fraud after a trial. Technician Cai was sentenced to 3 years of fixed-term imprisonment for committing the crime of assisting criminal activities in information networks and theft.

This case serves as a reminder for investors to exercise caution when investing in Virtual Money, especially in projects that promise high returns. At the same time, it highlights the necessity for regulatory agencies to strengthen oversight of Virtual Money exchange platforms to prevent the occurrence of similar scams.