以案说法：涉虚拟货币网络传销案件的定性

Group 1 - The "Plus Token" platform is identified as China's first major cross-border network pyramid scheme using cryptocurrencies as a trading medium, with over 2 million participants and a hierarchical structure exceeding 3,000 levels [2][4] - The platform attracted investments by falsely claiming to provide digital currency appreciation services, requiring participants to pay over $500 in Bitcoin or Ethereum to gain membership and earn "Plus Coins" [2][4] - By June 2019, the total amount involved in the scheme reached over 40 billion yuan, with funds primarily used for paying recruitment rewards and personal expenditures [2] Group 2 - The core legal issue revolves around whether the actions of the defendants constitute the crime of organizing and leading a pyramid scheme, as defined by Chinese law [3] - According to Article 224-1 of the Criminal Law of the People's Republic of China, the activities of the defendants meet the criteria for organizing and leading a pyramid scheme, as they required participants to pay fees to gain membership and relied on recruitment for returns [3][4] - The court found that the defendants' actions, which involved misleading participants into believing in non-existent value-added services while profiting from recruitment, fit the legal definition of a pyramid scheme [4]