Odaily Planet Daily reports that the Shanghai Yangpu District Procuratorate has disclosed a virtual currency fraud case. The case revealed that an eight-member fraud ring colluded with a virtual currency investment platform, posting low-price exchange information on social media to attract victims. They also posed as "cryptocurrency experts" and sent fake profit screenshots to gain their trust.

The gang lured victims into fully leveraged trading on designated platforms, then manipulated the market to cause margin calls, earning commissions from the platforms based on the investors' losses. The case involved numerous individuals and involved a substantial amount of money.

In March 2025, the Yangpu District Procuratorate indicted Peng and eight others for fraud. Between April and May, the court sentenced them to prison terms ranging from one to five years and imposed fines. Prosecutors cautioned that virtual currencies do not have the same legal status as legal tender, and related investment transactions are not protected by law. Investors should manage their finances through formal channels.