This case is the only one among the numerous appeals in the series of cases involving the crypto asset exchange accused of operating a casino where the judgment was revised on appeal.
Recently,Partner Lawyer Deng Xiaoyu of Mankun Law Firm (Shenzhen) and Lawyer Gao Mengyang of Mankun Law Firmsuccessfully defendeda second-instance case involving a crypto asset exchange suspected of operating a casino.。
Against the backdrop of an unfavorable first-instance judgment already rendered and extremely limited scope for defense in the second instance, the team of Lawyers Deng Xiaoyu and Gao Mengyang systematically articulated their arguments and achieved key breakthroughs during the second-instance proceedings. This led the court to reassess the findings of the original trial, resulting in a revised judgment on appeal, a significant reduction in the sentence, and a fairer and more reasonable judicial outcome for the client. This case is also thecrypto asset exchange operating a casino caseseries'only case among numerous appeals where the judgment was revised.
Asthe exchange involved is a well-known domestic exchange, and the technical logic, fund flows, and operational model far exceeded the difficulty of traditional case adjudication,，this case attracted widespread attention within the industry and society.The crypto asset exchange involved in this casefeatured a vast scale, a large number of individuals involved, and an extremely complex transaction structure.The client, who collaborated on the development of the exchange's perpetual contract function and served as the team leader,was identified as a principal offender suspected of the crime of operating a casino.
After accepting the engagement, the team of Lawyers Deng Xiaoyu and Gao Mengyang devoted substantial time to studying the platform's operational mechanisms, core behavioral pathways, and user participation methods, and systematically organized the evidence framework and transaction logic. By precisely identifying flaws in the case evidence and core points of contention, and employing multiple defense strategies—including legal application arguments regarding the business model, effective cross-examination, citation of similar cases, and objections to procedural legality—the second-instance court ultimately accepted our arguments, determined that the original sentencing was excessive, and adjusted the sentence in light of the client's role and the assessment of evidence, resulting in a significant reduction in the client's prison term.
This case demonstrates Mankun Law Firm's profound expertise in criminal defense related to digital assets, crypto assets, and Web3. The team of Lawyers Deng Xiaoyu and Gao Mengyang has longspecialized in the crypto asset sector, possessing extensive practical experience in cases involving on-chain technical logic, new types of cybercrime, and crypto payment businesses,enabling them to provide powerful, insightful, and forward-looking defense for clientswhile the judicial system is still exploring these new business models.
Ifyou or your enterprise face criminal risks, regulatory investigations, or compliance needs in the fields of digital assets, crypto assets, platform operations, or Web3,please feel free to contact the Mankun Law Firm team. We will assist you in effectively mitigating risks and safeguarding your legitimate rights and interests with professionalism and prudence.
Excerpts from the second-instance judgment are shown below:
Introduction to Lawyer Deng Xiaoyu's Cases and Articles:
Cases:
- In a case involving a studio implicated in "JX3" game cheat programs, we pursued a lesser charge defense, successfully changing the characterization from the crime of sabotaging computer information systems to the crime of providing programs for illegal control of computer information systems, resulting in probation for the entire case;
- In a case where keep-alive technology was alleged to sabotage computer information systems, we pursued a not-guilty defense, leading the public security organs to terminate the investigation;
- (Online Gold Fraud Case I) In the case of Chen Mou using gold to conceal proceeds, who was prosecuted for both aiding information network criminal activities and concealing proceeds, our defense resulted in the final determination of only the crime of concealing proceeds;
- (Online Gold Fraud Case II) In the case of Team Member C Mou involving concealing proceeds, our defense led to the public security organs withdrawing the case;
- In a case where a SMS bulk-sending company was suspected of telecom fraud, we pursued a not-guilty defense, the characterization was changed to the crime of aiding information network criminal activities, and the public security organs subsequently terminated the investigation;
- In a case where a company was suspected of crawling data from XiaoHongShu, we pursued a not-guilty defense, leading the public security organs to terminate the investigation;
- In a case involving Filecoin mining suspected of pyramid selling, we pursued a not-guilty defense for the employees, leading the public security organs to terminate the investigation;
- In the case of Peng Mou involving virtual currency fraud, we pursued a not-guilty defense, leading the public security organs to terminate the investigation;
- In the case of Cai Mou disseminating obscene materials online, we pursued a lesser charge defense, obtaining release on bail pending trial;
- (Overseas Gambling APP) In the case of operating a casino, where the up-and-down point studio was involved in gambling funds amounting to RMB 360 million, we defended the studio head, secured recognition as an accessory, and ultimately received a sentence of three and a half years;
- (Domestic Gambling APP) In the case of operating a casino, we defended members of the money-laundering gang, the charge was changed to aiding information network criminal activities, and probation was granted.
Articles:
《Perpetual Contracts Are Not Gambling Under Criminal Law》
《Polymarket Project Involved in Gambling Highlights That Contracts Are Not Gambling》
Introduction to Lawyer Gao Mengyang's Cases and Articles:
Cases:
- A core employee of a top-ten exchange was involved in a case of operating a casino, ultimately receiving probation;
- A token issuance project was involved in a fraud case; after one year, a decision of non-prosecution was finally obtained;
- A KOL faced criminal risks due to a project collapse; risks were excluded, and the matter was ultimately converted into a civil dispute;
- A user was involved in a fraud case related to fiat off-ramping; detained in two locations, released on bail after 15 days, and the case was no longer pursued;
- A staff member of a crypto circle project was involved in a commercial bribery case, resulting in a decision of non-prosecution by the procuratorate;
- An investor in a Web3 project was subject to joint cross-provincial law enforcement; the suspect status was eliminated, and the individual was ultimately no longer involved in the case;
- In a ministry-supervised case involving contract fraud, effective defense significantly reduced the client's sentence;
- In a criminal case involving a crypto asset exchange, the sentencing recommendation was reduced from nine years to five and a half years through defense;
- In a smuggling case, after the client was arrested, the sentence matched the time already served;
- In an online fraud case, after arrest, the client was sentenced to three years imprisonment with a five-year probation period and released in court;
- In a case involving an forex platform suspected of illegal business operations, probation was ultimately achieved;
- In a rights protection case for a user of an NFT platform, investment funds were recovered after successful criminal complaints.
Articles:
《NFT Digital Collectible Platform Involved in Criminal Cases: How Is the Criminal Amount Determined?》
《Overview of High-Frequency Criminal Charges Involving Virtual Currencies in China》
《Crypto Circle Workers: A Guide to Avoiding Criminal Pitfalls》
《Huge Losses in NFT Startup, Yet Charged with Online Fraud?》
