- A young university student in China has been sentenced to prison for launching a fraudulent cryptocurrency.
- The 24-year-old student caused significant financial losses to investors, leading to his conviction.
- Local reports highlight that the student utilized Binance Smart Chain for his fraudulent activity.
24-year-old Chinese university student sentenced to prison for cryptocurrency fraud, causing investors to lose thousands of dollars.
University Student Utilizes Binance Smart Chain for Fraudulent Token
The Zhejiang-based university senior, Yang Qichao, allegedly created a cryptocurrency token named BFF in May 2022. According to local sources, Yang initiated the token on Binance Smart Chain, adding liquidity to attract investors. However, he sharply withdrew the liquidity shortly after, causing a sudden crash in BFF’s price.
Investors Suffer Significant Losses
One investor, who had invested 5,000 USDT into the BFF token, reported that the value of their investment plummeted within seconds. The abrupt loss left many investors in a state of financial despair, highlighting the risks associated with cryptocurrency investments.
Student Receives Stiff Penalties
Yang was arrested in November 2022 and subsequently sentenced to four years and six months in prison by a Nanyang court. Additionally, he was fined 30,000 RMB (approximately 4,140 USD) for his fraudulent actions. The penalty reflects the gravity of the offense and serves as a stern warning against similar fraudulent activities in the crypto market.
Defense and Ongoing Legal Battle
Despite the conviction, Yang’s defense argued that the investors were experienced cryptocurrency traders who understood the risks and the specifics of the smart contract used for BFF. They maintained that Yang’s actions did not constitute fraud, as the investors were aware of the potential losses. Moreover, the defense claimed that the investors did not lose their tokens but only experienced a decline in value.
Future Proceedings and Verdict
The case is far from over. The second trial commenced in May 2024, with Yang’s defense team continuing to assert his innocence. The outcome of the ongoing legal proceedings will be closely watched, as it could set a precedent for similar cases in the burgeoning field of cryptocurrency.
Conclusion
This case underscores the volatile nature of cryptocurrency investments and the importance of due diligence. Investors must remain aware of the risks and exercise caution when navigating the crypto market. As the legal battle unfolds, the crypto community anticipates the final verdict, which may have significant implications for the industry’s regulatory landscape.
