In China, the trial continues in the case of a 24-year-old student who issued a token on the BNB Chain blockchain and, according to the prosecution, withdrew liquidity received from investors in the amount of at least 50,000 USDT. This is reported by local media.
According to the case file, in May 2022, the defendant Yang Qichao, on the eve of the launch of the Blockchain Future Force DAO project token, issued the BFF coin of the same name on the BNB Chain network. He added liquidity of 300,000 BSC-USD and 630,000 BFF to the protocol.
Immediately after that, a third-party user Lo spent 50,000 BSC-USD to buy 85,316. 72 BFF. 24 seconds later, Yang Qichao removed all liquidity from the protocol, receiving 353,488,115 BSC-USD and 508,069. 878 BFF. This operation resulted in a significant depreciation of BFF coins. Because of this, Lo was able to sell 81,043 BFF for just 21.6 BSC-USD.
The victim contacted the police, and in November 2022, Jan was detained. The prosecutor's office accused him of issuing fake virtual coins and fraud.
On February 20, 2024, the first instance court found the student guilty and sentenced him to 4.5 years in prison and a fine of 30,000 yuan (~$4,100).
Now the defense is trying to challenge this decision. In their opinion, the token issued by Jan cannot be considered fake, since it has a unique smart contract address. In addition, the mentioned company Blockchain Future Force subsequently issued coins under other tickers-BFFT and BFFA.
The lawyers shift the responsibility for the failed trades to the affected Lo, who, according to them, should have been aware of the risks of cryptocurrency trading. Based on the timing of his transactions, the defense team assumed that Lo made the transaction through an automated market maker.
They found that after a sharp drop in the price of the token, the trader continued trading, as a result of which the total balance of his wallet was 72,381,7198 BFF. At the time of the trial, BFF coins have significantly increased in price, reaching the equivalent value of 64,065,7134 USDT.
Despite the fact that Lo cannot use these assets for the duration of the hearing, the defendant's lawyers believe that the plaintiff did not suffer any losses as such.
Among other things, the lawyers mentioned the illegal status of cryptocurrency transactions in China, which excludes the possibility of protecting investors from the law.
The trial continues.
According to the case file, in May 2022, the defendant Yang Qichao, on the eve of the launch of the Blockchain Future Force DAO project token, issued the BFF coin of the same name on the BNB Chain network. He added liquidity of 300,000 BSC-USD and 630,000 BFF to the protocol.
Immediately after that, a third-party user Lo spent 50,000 BSC-USD to buy 85,316. 72 BFF. 24 seconds later, Yang Qichao removed all liquidity from the protocol, receiving 353,488,115 BSC-USD and 508,069. 878 BFF. This operation resulted in a significant depreciation of BFF coins. Because of this, Lo was able to sell 81,043 BFF for just 21.6 BSC-USD.
The victim contacted the police, and in November 2022, Jan was detained. The prosecutor's office accused him of issuing fake virtual coins and fraud.
On February 20, 2024, the first instance court found the student guilty and sentenced him to 4.5 years in prison and a fine of 30,000 yuan (~$4,100).
Now the defense is trying to challenge this decision. In their opinion, the token issued by Jan cannot be considered fake, since it has a unique smart contract address. In addition, the mentioned company Blockchain Future Force subsequently issued coins under other tickers-BFFT and BFFA.
The lawyers shift the responsibility for the failed trades to the affected Lo, who, according to them, should have been aware of the risks of cryptocurrency trading. Based on the timing of his transactions, the defense team assumed that Lo made the transaction through an automated market maker.
They found that after a sharp drop in the price of the token, the trader continued trading, as a result of which the total balance of his wallet was 72,381,7198 BFF. At the time of the trial, BFF coins have significantly increased in price, reaching the equivalent value of 64,065,7134 USDT.
Despite the fact that Lo cannot use these assets for the duration of the hearing, the defendant's lawyers believe that the plaintiff did not suffer any losses as such.
Among other things, the lawyers mentioned the illegal status of cryptocurrency transactions in China, which excludes the possibility of protecting investors from the law.
The trial continues.
