U Bao has been confirmed as a pyramid scheme by the Guangxi police and is under arrest and trial.

On August 23, 2018, the People’s Procuratorate of Zhongshan County, Guangxi Zhuang Autonomous Region approved the arrest of 16 suspects, including Wang Moufan, on suspicion of organizing and leading pyramid schemes. The 16 people were suspected of participating in Beijing Youlian Vanjia Technology Group Co., Ltd.’s “U Bao Instant Debt” illegal pyramid selling activity. This case is a case designated by the Ministry of Public Security, and the amount involved is more than 900 million yuan. As of the time of the incident, more than 120,000 offline members have been developed through online pyramid schemes.

Follow the clues and find out the big case behind it. In April this year, the Economic Investigation Department and the Internet Security Department of the Hezhou Municipal Public Security Bureau discovered during their work that Zhang Moufeng, a native of Zhongshan County, Hezhou City, used the online platform "U Bao" of Youlianwanjia Company to conduct suspected pyramid schemes. The business model has MLM characteristics such as entry fee, formation of levels, and compensation based on the number of people. The Hezhou City Public Security Bureau reported the clues to the higher authorities and handed the clues to the Zhongshan County Public Security Bureau for processing.

Further investigation revealed that the criminal suspect Wang Moufan and others relied on the platform of Beijing Youlianwanjia Technology Development Co., Ltd. to issue the virtual currency "U Bao" to raise funds, using high profits as bait to raise funds on the Internet. It recruits a large number of members, defrauds property by selling "U treasures" to members, and induces participants to continue to recruit others to participate. Its behavior seriously disrupts the economic order and is suspected of organizing and leading pyramid schemes.

In mid-July, the Zhongshan County Public Security Bureau organized the "7.11" task force police to arrest 16 criminal suspects including Wang Moufan in Beijing, Fuzhou, Shenzhen and other places.

On February 26, 2018, the "U Bao" platform advertised titles such as "National License" and "China Bitcoin" and officially launched the online issuance of "U Bao". In order to attract a large number of members to join and obtain huge profits, the "U Bao" platform has set that "U Bao" will only rise but not fall. "U members" must hold at least 10 "U Bao" to obtain static income, and the minimum holding is 300. Only with more than one "U treasure" can you obtain dynamic income and other joining rules and reward mechanisms.

New members of the "U Bao" platform can use their mobile phones or computers to register online through the "U Bao" platform. In addition to filling in their name, phone number, and ID number when registering, they also need to fill in their recommended members. , contact members, the platform system automatically identifies and records based on the recommendation relationship, so that the recommender and the new member can form an upline and downline relationship, which can unlimitedly develop downline, forming a top-down, multi-level, pyramid-shaped MLM organization system.

As of the time of the incident, the Ubao platform had developed into twelve major systems including "Yixin System", "Xinyuan System" and "Qilin System", with more than 120,000 registered members. There are more than 460,000 accounts, with members from 30 provinces, autonomous regions, and municipalities including Guangdong, Shandong, Zhejiang, Fujian, Guangxi, Hunan, and Beijing. By selling "U treasures" to offline members, the platform has attracted a total investment capital of more than 900 million yuan from members.

This case involves a large number of people and a huge amount of money, so it is urgent to preserve electronic evidence. Since the case was filed, the party group of the Zhongshan County Procuratorate has attached great importance to it and immediately launched the joint review mechanism for major cases. The deputy prosecutor in charge of criminal prosecution personally led the team to intervene in the investigation in advance to understand and grasp the progress of the case in a timely manner and guide the investigators to conduct accurate and comprehensive screening. , fixed evidence.

In the end, a decision was made to approve the arrest of 16 suspects referred by the public security organs for organizing and leading pyramid schemes. Currently, the case is being further processed.

In recent years, new types of online pyramid schemes have emerged frequently. Criminals use concepts such as "Internet finance" and "unlimited profit distribution" to disguise themselves, use high returns as bait to attract public investment, and engage in large-scale fraud on the Internet. When engaging in MLM activities, the essence of MLM cannot be concealed behind the gorgeous packaging.

Prosecutors remind the general public that anyone who requires the payment of funds, purchases of products, or development of downlines in the name of membership development, franchising, etc., and uses the funds paid or sales of downlines as the basis for remuneration and commission, is considered a criminal offender. Regarding pyramid schemes, the general public needs to keep a clear mind, be wary of the temptation of high profits, and consciously stay away from pyramid schemes traps.

Extended information:

On September 19, 2018, the 2018 National Cyber ??Security Publicity Week Guangxi event was officially launched in Nanning. The entire district will focus on the theme of "cyber security for the people, and cyber security depends on the people" and organize various forms of activities to popularize cyber security knowledge, improve people's basic protection skills, enhance cyber security awareness, and create a safe, healthy and civilized cyber environment.

According to data from the China Internet Network Information Center, as of June 2018, the number of netizens in my country reached 802 million yuan, and the Internet penetration rate was 57.7%. Among them, the number of mobile phone netizens reached 788 million yuan, and netizens accessed through mobile phones. The proportion of the Internet is as high as 98.3%. While the Internet brings great convenience to our daily lives, it also lurks many traps and unsafe factors.

Cybersecurity Publicity Week mainly focuses on network security issues in key areas and industries such as finance, telecommunications, e-government, and e-commerce, and carries out publicity activities on hot issues of public concern. The district will uniformly carry out theme day activities such as Cyber ??Security Campus Day, Telecommunications Day, Rule of Law Day, Finance Day, Youth Day, and Personal Information Protection Day.

Among them, Nanning City will organize theme day activities to enter communities, rural areas, enterprises, institutions, and campuses, and popularize network security through special exhibitions, on-site consultations, knowledge competitions, theme lectures, etc. Knowledge, organize network security officer training courses, network emergency drills, network attack and defense competitions, etc. to enhance the network security awareness and protection skills of the whole society, and promote the formation of a good atmosphere in which the whole society attaches great importance to network security.

Typical cases:

1. Fake base stations sent mass SMS credit cards to steal credit cards

Since October 2017, many victims in Nanning have reported that according to After the bank text message prompts you to enter the verification code, the money in the bank card is transferred. After investigation, the text message was a group of criminals pretending to be a bank to send credit card limit increase text messages through fake base station equipment, luring victims to click on the Trojan horse link in the text message, and defrauding the verification code for online fraud.

In June 2018, a task force composed of the Cyber ??Security Detachment of Nanning Municipal Public Security Bureau and other departments successfully cracked several cases of using fake base stations to steal credit cards online, destroyed 5 criminal gangs, and arrested criminals. There were 10 suspects, and a batch of computers and mobile phones were seized. Currently, all 10 suspects have been criminally detained in accordance with the law.

2. "Post-90s" use social groups to set up casinos and gamble

In February 2018, police from the Shanglin County Public Security Bureau discovered during work that Qin and Baiwei, Shanglin County Mo Mou and others from the town organized people to use Internet red envelopes to plant mines and steal red envelopes to conduct online gambling. After investigation, the suspects who used Internet social groups to open casinos for gambling were mainly young people born in the 1990s.

In the early morning of June 25, the task force carried out arrests. They arrested 23 suspects involved in the case, detained 20 people, seized and froze 95 bank cards involved, and seized computers, mobile phones, and account books involved in the case. Wait for a batch.

3. Illegally obtaining citizens’ information and making black mobile phone cards

In July 2018, Chongzuo police successfully destroyed three illegal manufacturers and sellers of mobile phones in Chongzuo, Nanning, Yulin and other places. In the SIM card den, 6 suspects were arrested, more than 60,000 pieces of personal information of citizens were seized, and 6 computers, more than 1,200 SIM cards and other tools involved in the case were seized in accordance with the law.

The gang uses telecom agency business halls in Nanning and other places as its base to illegally purchase and collect citizen identity information from online and other channels. It uses the business halls to activate SIM cards as a loophole to illegally produce, collect and sell black cards. to other cities. As of the time of the incident, the gang had sold tens of thousands of black mobile phone cards and made hundreds of thousands of dollars in profit. Currently, six people involved have been detained under criminal supervision.

4. The production and sale of state agency documents involves many places across the country

In March 2018, the Wuzhou Internet Security Department discovered that someone was illegally buying and selling national documents such as resident identity documents and driving licenses online. After investigation, the case involved *** 5 main-line agents and 27 other secondary agents. More than 3,000 pieces of express delivery data were obtained for trading forged documents, involving more than 2,000 buyers and involving 32 provinces and autonomous regions across the country. city.

On May 29, under the unified command of the Ministry of Public Security and the Department of Public Security, public security agencies at all levels carried out arrests simultaneously in 6 provinces including Hunan and 10 cities in Guangxi, and arrested 3 manufacturers and traders in one fell swoop. At the fake certificate den, 40 suspects were arrested, and more than 3,000 sets (sheets) of various types of fake certificates and a batch of certificate-making machines and raw materials were seized.

5. The amount involved in online pyramid schemes reached 1 billion yuan

In March 2018, the Hezhou Internet Security Department discovered that Beijing Youlianwanjia Technology Development Co., Ltd. Invest in "U Bao Coin" on the online platform "U Bao Coin". The platform's business model has the characteristics of pyramid schemes such as charging entry fees, forming levels, and remuneration based on the number of people developed.

After investigation, the MLM platform involved formed a pyramid level, and the funds involved reached 1 billion yuan. On July 16, the task force made a unified arrest and arrested all 16 people including Zhang Moufeng, the core member involved in the case, and froze 240 million yuan of funds involved. Currently, the case is still being processed.

Zhongshan Information Network - The Zhongshan County Procuratorate approved the arrest of 16 principal culprits in the online pyramid scheme case involving 900 million yuan and 120,000 members

Nanning News Network - The entire region launched a unified network security theme day activity Don’t fall for these traps