The Shanghai Intermediate People’s Court (The Shanghai No. 1 Intermediate Court) has revealed on its official account that the court has recently concluded a second-instance criminal case related to digital collectibles. The defendants, including Vương, had issued AI-generated digital collectibles through a third-party blockchain company for distribution “on-chain”, using fraudulent methods to illegally raise funds, with a significant amount of money involved. As a result, the court sentenced defendant Vương to 8 years and 6 months in prison and fined him 550,000 yuan for the crime of fundraising fraud.
The presiding judge of the second-instance court, Mr. Co Binh Chau, pointed out that most of the digital collectible transfer platforms currently available in the market are either self-established by users or are illegal exchanges organized by some medium and small-sized platforms. For platform operators, before engaging in any business activities, they should verify their legal status with relevant regulatory authorities and industry associations, while also obtaining a legal business license.
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