Scam remains the same despite high-tech cloak

PEOPLE ARE RELATIVELY FAMILIAR with traditional pyramid schemes that put more importance on recruiting new members than selling actual products. But the internet and blockchain have given a shot in the arm to the scam, as swindlers have created virtual currency pyramid selling to dress up their old tricks. ThePaper.cn comments on Wednesday:

It is reported that since 2014, 337 people have been sentenced for crimes relating to 60 kinds of virtual currency. The fraudsters sold self-made virtual currencies through pyramid schemes that swindled thousands of victims out of at least 10 billion yuan ($1.56 billion).

Some local authorities were misled into believing that the virtual currencies represented the new economy.