What should FCoin "Thunderstorm" investors do? The lawyer advised

Text: Xiao Yan

Production: PANews

A truth announcement announcing the closing of FCoin.

FCoin founder Zhang Jian said, "The route to hell is paved with goodwill." Hell is that the biggest problem that FCoin currently faces is not the problem that the system cannot be restored, but the problem that the capital reserve cannot be paid by users. It is expected that the scale of non-payment is between 7000-13000 BTC.

FCoin produced a chain reaction after the thunderstorm, and many cooperative agencies that purchased products on its platform were unable to pay. ExinOne issued an announcement saying that some of its assets in the "Yubao" business existed in FCoin wealth management accounts. Due to the shortfall in FCoin assets, users are likely to be unable to retrieve their previous assets.

What should investors do, and who should report the case?

Today, various investors such as retail investors, institutional investors, and market makers are facing the problem of being unable to pay. From the discussion of the rights activists, everyone's funds and assets range from tens of thousands to ten million yuan. Various rights groups are collecting various types of information from Zhang Jian and his team, and the authenticity of the information is difficult to distinguish.

Can FCoin circumvent China's legal supervision? Attorney Zhang Yu, the head of the Bitlaw team and senior partner of Shanghai Hansheng Law Firm, said in an interview with PANews that it is unlikely that FCoin wants to circumvent domestic legal supervision. "Although many Chinese project owners choose to register abroad or do not set up a registration site, the object of the fundraising is mainly for Chinese investors. We notice that Fcoin, as an exchange registered in Singapore, although it is also clearly stated in the user agreement Tips do not provide services for users in mainland China, but in fact, there is still a simplified Chinese web page description on the website of the trading platform. The registration process also accepts registration of mobile phone numbers from the mainland of China. At present, most of the users of the trading platform From mainland China. "

At present, many investors take Zhang Jian, the company that previously operated Beijing Bochen as the main body, to report. For which main body will it be more likely to be filed by the police? Zhang Yu believes that the basis for the police's final filing is judged based on the qualitative nature of the criminal act and the relevance of the subject and the criminal act. On the premise that the FCoin trading platform is suspected of a crime, if there is no evidence that Beijing Bochen is FCoin The actual operating subject or actual participation in the operation, then it is not very likely that Beijing Bochen will be the subject of the investigation.

"Our country ’s criminal law mainly adopts the principle of territoriality and the principle of person (" Article 7 If a citizen of the People ’s Republic of China commits a crime under this Law outside the territory of the People ’s Republic of China, this Law shall apply, but Those with a term of imprisonment of less than three years may not be prosecuted. "Therefore, based on the relevant provisions of our criminal law, if the person in charge of the actual control and operation team of Fcoin is a Chinese national, then investors can try to use the actual operation team of Fcoin Report to the police at the same time as the subject. "Zhang Yu added.

Sun Jun, a senior lawyer at Shanghai Shenhao Law Firm, wrote that investors should go to the local public security bureaus to report the case. Finally, where the public security bureau will accept the case and have a strong ability to solve problems, they will focus on the public security bureau to report the case as a whole.

Sun Jun said that from his many years of experience in handling cases, Jiangsu Yancheng has the best ability to handle cases in the currency circle, because they have handled PLUSTOKEN and WOTOKEN cases. They have done very careful work in property disposal, and they are happy to accept such cases. After all, the case involves a relatively large amount of money. Public security handling of this case can not only generate local income, but also be more conducive to success. Most importantly, they are very experienced in dealing with similar currency circle cases. Recently, the Shanghai Pudong Sanlin Economic Investigation has just handled the IDAX case, and the two cases have similarities.

If the case is filed, what will be the conviction?

If the police do not accept the case, it may be because the case itself does not fall within the scope of criminal jurisdiction, that is, civil and commercial disputes.

On September 4, 2017, the seven central ministries and commissions jointly issued the "Announcement on Preventing the Financing Risk of Token Offerings", and on August 24, 2018, the five ministries and commissions such as the CBRC [8] issued "On the Prevention of" Virtual Currency "" Blocks. "Risk Tips for Illegal Fundraising in the Name of" Chain "have clearly specified that no organization or individual may illegally engage in token issuance and financing activities, and any so-called token financing trading platform shall not engage in legal currency, tokens, and" virtual currencies "with each other. In the exchange business, you may not buy or sell tokens or "virtual currencies" as a central counterparty, and you may not provide pricing, information intermediation, and other services for tokens or "virtual currencies."

On January 12, 2018, the Internet Finance Association of China issued the "Risk Tips on Preventing Disguised ICO Activities", calling on "for the IMO model and various types of overseas servers to continue to provide domestic residents with ICO and 'virtual currency' trading venue services, If they are found to be involved in illegal financial activities, they can report to the relevant supervisory authority or the China Internet Finance Association, and if they are suspected of illegal crimes, they can report to the public security organs.

However, if the case is filed, if the suspected illegal fund-raising is mainly facing two charges, the crime of fund-raising fraud and the crime of illegally absorbing public deposits. Zhang Yu said that the difference between the two can be summed up in one sentence. The illegal punishment for absorbing public deposits is "you have not been approved", and fund raising fraud is essentially a fraud.

"As for what kind of crime Fcoin will be convicted if the thunderstorm is filed for investigation, it will ultimately depend on all the evidence finally found by the police to be judged."

Responsible in life?

Zhang Jian said in the "FCoin Truth" that he has begun a new venture and is responsible for the end of his life. A single announcement cannot defend him, nor can he turn a possible criminal legal relationship into a civil legal relationship.

"There is only one standard for determining the legitimacy of an act, that is, the current legal provisions, not based on the subjective discussion of anyone." Zhang Yu said, as for whether you believe he can pay back the money, it can only be an investor Self-employed judgement.

This is not the time for sensation.

Under the standards of the law, I don't know if Zhang Jian has the opportunity to take responsibility in the end.

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