• Major Filecoin mining firm Shenzhen Shikongyun (Space-Time Cloud) Technology is currently being tried in a Chinese local court for an alleged $83.2 million pyramid scheme.
• The defendants allegedly lured customers into the scheme under the pretense of mining FIL coins, then required participants to pay fees for mining machine purchase or rental, and enticed further participation and deceived individuals to gain assets.
• When exposed, the filpool.io platform had 57,122 members and bpool.io had 37,015 with a total of RMB 606,955,718 ($83,185,636) and a total of 62,155,764 coins obtained via both platforms.
In 2018 two founders Lai Mouhang and Lai Moujun established Shenzhen Shikongyun Technology in China’s Guangxi autonomous region. Soon after joining were defendants Liang Mousheng and Hu Mou. In September 2019 Lai Mouhang created a community website domain name ipfs.cn as well as WeChat public account to promote distributed storage technology and Filecoin’s economic model using exaggerated profit predictions to attract investors with promises of high returns from storage servers sold in a pyramid operation. In February 2021 they developed the partner platform bpool.io to carry out multi-level marketing activities which involved getting more people to participate by paying fees for mining machine purchase or rental with promises of high returns luring them into investing more money into the business thus defrauding them of their property when exposed in May 2022 leading to their arrest.
The ongoing trial involves four executives including its founders accused of violating economic and social order by using exaggerated profit predictions to attract investors promising excessive returns for storage servers sold in a pyramid operation thus disturbing economic and social order according to prosecutors who said that they enticed further participation and deceived individuals to gain assets when exposed having 57,122 members on filpool.io platform while bpool.io had 37,015 with a total of RMB 606 955 718 ($83 185 636) and a total of 62 155 764 coins obtained via these two platforms respectively according to reports on the proceedings so far .
Reaction from Prosecution
Prosecutors stated that this case is currently under further investigation adding that with lure of substantial returns defendants enticed further participation thus deceiving individuals to gain assets which disturbs economic & social order hence accusing 4 executives including founders as guilty parties involved in such illegal activities according to prosecution’s statement during trial proceedings so far .
The ongoing trial involving major Filecoin Mining firm Shenzhen Shikongyun (Space-Time Cloud) Technology is underway due allegations against 4 executives including its 2 founders accused of orchestrating $83 2 million Pyramid Scheme through its filpool io & bpool io platforms by using exaggerated profit predictions as bait luring customers into buying/renting mining machines along with enticing them into investing more money bringing more people into business thus defrauding participants off their property disrupting economic & social order according prosecution’s statement during trial proceedings so far .