Release of virtual currency and arrest of Yang Qichao: Details of the case
Date: 2024-06-07 Author: Gabriel Deangelo Categories: IN WORLD
Yang Qichao, a student born after 2000, released a virtual currency called BFF and found himself at the center of a scandal involving liquidity siphoning and fraud allegations. This incident led to a lawsuit and significant consequences for all parties involved.
Creation and release of BFF
At the beginning of May 2022, Yang Qichao, being fascinated by virtual currencies, drew attention to the Blockchain Future Force (BFF) organization, which was preparing to issue decentralized tokens. On May 2, 2022, Yang created the BFF digital currency on Binance Chain and added liquidity of 300,000 BSC-USD and 630,000 BFF to it.
Fraud and withdrawal of liquidity
In the cryptocurrency trading process, “liquidity pools” play a key role. Users deposit a “token pair” into a smart contract, creating liquidity for trading. On the same day, Lo, one of the investors, exchanged 50,000 BSC-USD for 85,316.72 BFF. However, 24 seconds after adding liquidity, Yang Qichao withdrew it, causing BFF to depreciate. As a result, Law was able to exchange his BFF coins for only 21.6 BSC-USD, suffering a significant loss.
Trials and accusations
After the incident, Luo contacted law enforcement authorities, reporting the theft of more than 300,000 yuan. In November 2022, Yang Qichao was arrested on fraud charges. In February 2024, the Nanyang High-Tech Industrial Development Zone People's Court found him guilty and sentenced him to 4 years and 6 months in prison and fined him 30,000 yuan.
Second instance and defense
In May 2024, the case was heard at the Nanyang Intermediate People's Court. Lawyer Yang Qichao maintained his innocence, arguing that the BFF virtual currency has a unique and tamper-proof contract address. He also emphasized that the platform allowed liquidity to be added and withdrawn at any time, and Yang’s actions did not violate its rules.
The case of Yang Qichao has become a precedent in Chinese jurisprudence regarding virtual currencies. Despite the defense's assertions about the legitimacy of Yang's actions, the court found him guilty of fraud. This case highlights the importance of regulation of cryptocurrency transactions and the easy and accessible opportunity at a young age, using intelligence and intelligence, to create a digital currency and make money from it. The main thing: in a legal way.
