A 24-year-old university student in China, known for its bans on Bitcoin and cryptocurrencies, published a token on BNBChain.
This token was the subject of a lawsuit and the court sentenced the Chinese student for fraud.
According to local news agency Thepaper, Chinese university student Yang Qichao launched an altcoin called BFF on BNBChain.
Qichao, who added liquidity to the altcoin named BFF and then withdrew it, caused the price of the altcoin he issued to drop suddenly.
The court sentenced Qichao to 4 years and 6 months in prison on the grounds that he caused an investor to lose 50,000 USDT by withdrawing liquidity.
While the court imposed a fine of 30,000 yuan in addition to the prison sentence, Yang Qichao and his lawyers argued that he did not commit fraud.
Yang and his lawyers argued that the investors who bought the crypto called BFF were experienced and had been trading crypto money for a long time.
Lawyers also stated that investors clearly know the risks inherent in the BFF token and said:
“This investor is an experienced cryptocurrency investor and knows the risks.
Additionally, this investor still holds BFF tokens. At this point, the BFF tokens he held gained value due to the increased liquidity after the event. Therefore, there is no harm to the victim.
“There is no fraud involved.”
*This is not investment advice.