Legal basis: the crime of organizing and leading pyramid selling activities in Article 224 of the Criminal Law.
In the name of business activities such as selling goods and providing services, organizations and leaders require participants to obtain membership by paying fees or purchasing goods and services, and form a hierarchy in a certain order. If they directly or indirectly use the number of developers as the basis for remuneration or rebate, they induce or coerce participants to continue to develop pyramid schemes in which others participate, defraud property and disrupt economic and social order, they shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.