Chinese student Yang Qichao, 24, made headlines after creating a token on BNBChain, despite China’s strict stance on Bitcoin and cryptocurrencies. The token, named BFF, led to legal troubles for Qichao, resulting in a prison sentence for fraud.
According to reports from Thepaper, Qichao’s actions caused the price of the BFF token to plummet after he added and withdrew liquidity. This move led to an investor losing 50,000 USDT, ultimately leading to Qichao’s 4-year and 6-month prison sentence. In addition to the prison term, a fine of 30,000 yuan was imposed.
Qichao and his legal team maintained that he did not commit fraud, arguing that the investors who purchased BFF were experienced in cryptocurrency trading and were aware of the risks involved. They emphasized that the investor in question still held BFF tokens, which increased in value after the incident, causing no harm.
Despite the court’s ruling, Qichao’s defense team stood by their assertion that no fraud was committed. This case serves as a reminder of the complexities surrounding cryptocurrency investments and the importance of understanding the risks involved.
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