Recently, I saw an analysis by a lawyer about a project suspected of a Ponzi scheme. A lawyer from **上海の法律事務所** pointed out that the promotion model of **Piコイン** may fall under Ponzi-scheme crimes defined in **中国刑法**.

What this means is that this project has no physical project support and instead builds a hierarchical structure through an invitation system. The way it works is that an inviter develops a downline, which brings benefits such as accelerated mining. In other words, it’s a typical Ponzi scheme structure where profits are made by increasing new participants.

The issue is that if someone develops a downline to obtain **Piコイン** and sells it on an exchange, and the downline level exceeds 3, the relevant organizers could face up to a maximum of 5 years in prison and fines. In addition, if the amount exceeds 2,500,000 **人民元**, or the number of developers exceeds 120 people, the prison term would be extended to more than 5 years. In other words, the more participants there are, the higher the risk becomes.

In fact, in 2023, **湖南省の公安局** issued a statement that there are risks in the circulation of this currency. I think it’s really important to be careful about participating in projects like this, because Ponzi scheme crimes may not only hold individuals legally accountable, but also entire organizations.