What is MLM?

MLM refers to the behavior of organizers developing people and illegally obtaining wealth by developing people or requiring people to be developed to obtain qualifications to join on the condition of paying a certain fee. The essence of MLM is a "Ponzi scheme", that is, using the money of those who come after you to distribute the profits of those who came before you.

New type of MLM: It does not restrict personal freedom, does not collect ID cards and mobile phones, and does not take large classes collectively. Instead, it uses capital operation as a banner to attract people to defraud money, and uses driving luxury cars, wearing gold and silver, etc. Use money to attract, let your relatives and friends join, and finally make you lose all your money. Extended information

In August 2017, four departments including the Ministry of Education and the Ministry of Public Security issued a notice calling for severe crackdowns and banning of pyramid schemes in accordance with the law. The notice emphasized that under the guise of "entrepreneurship and employment," Various pyramid schemes that lure job seekers to join them in the name of "recruitment" and "job introduction" shall be banned in accordance with the law. The latest judgment was issued by the court on May 2, 2018. The 65 kinds of "MLM coins" involved exceeded 10 billion, and more than 10 million people bought them.

Among the 141 cases of virtual currency pyramid schemes searched on the China Judgment Documents Online, one judgment was issued by the court on May 2, 2018. The number of such criminal cases has been increasing year by year. In 2014, the court sentenced 5 cases, which has doubled since then and increased to 62 cases in 2017.

According to the judgment document, among the above-mentioned virtual currency pyramid schemes, "OneCoin" involved the highest amount, reaching a total of 7 billion, and its global membership number is 10,770,000, the largest number. Judging from the development scale of MLM organizations in China, the MLM organization "Yuncoin" (also known as World UnionPay and World Cloud Union Online MLM Platform) has the most number of offline members with 4,391,449; followed by the "Dark Coin" MLM organization with the largest number of members. More than 3.4 million people.