Do you remember what happened to those forex orders? Investors who follow up will be able to find that most of the crimes eventually given by the police and procuratorate are fraud, illegal fund-raising, or organizing and leading pyramid selling activities. So what's the difference between these charges? What's the difference? In fact, whether it is in the name of foreign exchange trading, futures trading or virtual digital currency, any network pyramid selling activities, once caught by the police, waiting for them will also be the result of these convictions.

Simply put, the crimes of fraud and illegal fund-raising are more serious than the crimes of organizing and leading pyramid schemes, and can face heavier penalties, up to life imprisonment, while the latter is less severe. The specific difference between the two charges needs to be seen according to the provisions of criminal law. However, it should be noted that no matter what kind of charges, it is illegal to directly point to foreign exchange funds. So don't just consider the immediate interests and try to do some opportunistic behavior, or waiting for you may end up in jail!

I. Crime of organizing and leading pyramid selling activities

2. Illegal fund-raising fraud and fraud crimes

I. Crime of organizing and leading pyramid selling activities

The crime of organizing and leading pyramid selling activities mainly involves defrauding property, and if it does not involve defrauding property, it does not constitute the crime.

According to the provisions of Article 224 of the Criminal Law, the crime of organizing and leading pyramid selling activities refers to business activities such as selling goods and providing services, requiring participants to obtain membership qualifications by paying fees or purchasing goods and services, and forming levels in a certain order, with the number of development personnel as the basis for compensation or rebates. A pyramid selling activity that lures or coerces participants to continue to develop others to participate, thereby defrauding property and disrupting economic and social order. For such crimes, the penalty may be fixed-term imprisonment of not more than five years or criminal detention and a fine; If the circumstances are serious, he may be sentenced to fixed-term imprisonment of not less than five years and fined.

What is fraudulent property?

According to judicial interpretation, online pyramid selling activities usually have the characteristics of fabricating projects and profit prospects, and the profit source of the platform is actually the entry fee, entry fee, service fee, rebate point, etc., which takes the participant as the source of property. Activities that meet these characteristics belong to the crime of organizing and leading pyramid selling activities.

In the crime of organizing and leading pyramid selling activities, involving defrauding property is a common situation. Even in MLM activities that do not involve defrauding property, it may still constitute other crimes, such as the crime of illegal business or other related crimes, such as illegal selling of fake and inferior products constitutes the crime of illegal selling of fake and inferior products, or it may be identified as an administrative violation.

According to the current judicial precedent, online pyramid selling cases are mainly convicted of organizing and leading pyramid selling activities.

2. Illegal fund-raising fraud and fraud crimes

There are obvious differences between illegal fund-raising fraud and fraud crime and the crime of organizing and leading pyramid selling activities.

Mainly reflected in the pyramid selling crime is not only infringe on the property ownership of others, but also mainly destroy the order of the market economy, which is an illegal business behavior. The crime of fraud (including fund-raising fraud) is different from it, its main object of infringement is the property ownership of others.

The crime of fraud infringes on the ownership of public and private property, subjectively with the purpose of illegal possession, and then carries out the fraud by fabricating facts and concealing the truth. The crime of organizing and leading pyramid selling not only infringes on the order of market economy and social management, but also infringes on the property ownership of citizens. The organizers and leaders of MLM activities seek illegal benefits through fraudulent means such as fabricating and exaggerating business projects and profit prospects, which is also an objective manifestation of this crime.

Why are many swindlers involved in foreign exchange funds being convicted of organizing and leading pyramid selling activities?

The reason is that their fraud is not directly defrauding investors of the so-called "entry fee", but through a series of business activities to obtain profits. Most investors or brokers also know exactly how to make money. And some opportunistic people are going to try to take advantage of this funding model, but the result is obvious.

Although there are differences between the two crimes, they are both illegal. As long as you participate in the fraudulent activities of foreign exchange funds, you will eventually face legal sanctions. Whether it is the crime of organizing and leading pyramid selling activities or fund-raising fraud, it is illegal! So don't try to gain profits through such speculative means, because the law will hold you accountable.