Crypto Fraud: Mastermind Sentenced to 11 Years for AA Chain Scam

A Guangdong-based company has been accused of issuing a cryptocurrency as part of a fraudulent scheme, with the mastermind behind the operation sentenced to 11 years in prison. The case, which was recently concluded by a Guangdong court, involved a defendant named Jie who established a company and issued a virtual currency called "AA Chain," promising investors significant returns.

The court found that Jie had fabricated facts to defraud investors, with the primary goal of illegally acquiring their property. In May 2018, Jie founded the company in Guangdong and served as its legal representative. He promoted the "AA Coin" on an internet platform, claiming that it had appreciation potential and would be listed on an exchange, with expected returns of no less than 5 million RMB. An investor, believing these claims, invested 990,000 RMB to purchase over 1.6 million AA Coins. However, these tokens were consistently locked and unable to be traded.

The court determined that the defendant's actions constituted fraud, with a particularly large amount of property involved. Jie was ultimately convicted of fraud and sentenced to 11 years in prison, along with a fine of 50,000 RMB. The judgment is final, and this case serves as a stark reminder of the potential risks associated with investing in cryptocurrencies, particularly when dealing with unregulated or untrusted entities.