Core Viewpoint - A new type of online pyramid scheme has been uncovered in Zhuzhou, Hunan, with the criminal group earning over 50 million yuan through a "cultural auction" scheme that developed a member network with up to 16 levels [1][11]. Group 1: Scheme Characteristics - The pyramid scheme utilized carefully crafted phrases such as "small investment, big return" and "24-hour return, risk-controlled profit" to attract participants [2]. - Members were required to pay a "threshold fee" by purchasing a product to join, a typical characteristic of pyramid schemes [7]. - The platform operated like an online marketplace, where members could auction items like calligraphy and bracelets, with profits generated through reselling and recruiting new members [4][6]. Group 2: Financial Structure - The platform's financial model involved a 4% profit margin from sales, where sellers received 1.5% and the remaining 2.5% was distributed among higher-level members [4][6]. - Daily sales figures indicated that a one-star store manager could generate 100,000 yuan with 50 members, while a five-star manager could achieve 3 million yuan with 200 members [7]. Group 3: Criminal Activities and Legal Actions - The police investigation revealed that the top-level members received 0.3% to 0.8% of daily sales as "technical service fees," indicating a structured profit-sharing scheme [11]. - In total, 20 suspects were arrested, including the mastermind, who was the actual controller of the pyramid scheme, and 13 were sentenced to prison for organizing and leading the activities [11].