- Chinese prosecutors have accused Lai Mouhang and Lai Moujun of running a complex scheme to defraud investors.
- The fraud involved exploring Filecoin’s DLT and blockchain rewards.
- The defendants allegedly promised substantial profits by replicating the economic model of Filecoin.
The future of Filecoin (FIL) now hangs in the balance as China’s crackdown on fraudulent activities within the crypto space unravels.
A recent local report revealed that Chinese public prosecution had leveled severe accusations against individuals allegedly involved in a complex scheme. These individuals were said to have exploited Filiecoin’s distributed ledger technology (DLT) and blockchain rewards.
According to the prosecution’s claims, defendants Lai Mouhang and Lai Moujun, along with others, established Shenzhen Space-Time Cloud Technology in June 2018. The defendants are accused of propagating the investment potential of DLT and the economic model of Filecoin.
Mouhang and Moujun created a web of deceit by promising substantial profits through a block reward system. In particular, they offered Filecoin tokens for miners who uncovered new blocks. Meanwhile, the defendants allegedly conspired to replicate the economic model of Filecoin.
In addition, Mouhang and Moujun reportedly developed the filpool.io platform under their company and enticed participants to join on the promise of substantial returns. The accused purportedly employed a membership-based system to lure existing investors with cloud computing power packages and attractive bonuses for bringing in new members.
According to the report, this elaborate setup allowed Mouhang and Moujun to defraud participants of their funds. The prosecution claims that the defendants expanded their operation by launching a partner-model Space-Time Cloud platform in 2021.
The said platform reportedly attracted many participants, resulting in significant sales of cryptocurrencies and fiat currencies. The total amount involved is reportedly in the hundreds of millions of yuan.
The Chinese prosecution agency asserts that the defendants masterminded an elaborate scheme by exploiting the growing interest in cryptocurrencies. It also argues that their actions disrupted economic and social order and violated criminal law.
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