Ensuring the lawful development of Web3 in China.
Deng Xiaoyu, Partner at Mankun Law Firm (Shenzhen)achieved a favorable defense outcome in a case involvingthe crime of operating a casinoarising from the operation of Texas Hold'em games in an offline card room. In this case, thedealer represented by him wassentencedto probation, while other individuals involved in the same case were sentenced to immediate imprisonment.Other relevant personnel involved were sentenced to actual imprisonment.
I. Release on Bail Does Not Equate to Case Closure
Y, a casino dealer, was quickly released on bail after being brought to justice. During the bail period, Y assumed the matter had concluded and only decided to retain counsel for defense as the trial date approached.
After accepting the engagement, Attorney Deng Xiaoyu promptly reviewed the case file, held multiple detailed discussions with suspect Y, and carefully calculated Y’s illegal gains.
The defense counsel subsequently submitted that suspect Y should be recognized as having performed meritorious service, but the procuratorial organ did not make such a determination.
On the eve of the trial, defense counsel Attorney Deng Xiaoyu submitted to the case-handling authorities a legal opinion requesting the collection of evidence, accompanied suspect Y in meeting with the investigating officers, elaborated in detail on the circumstances supporting the recognition of meritorious service by suspect Y, and requested in person that the relevant evidence be transferred to the court.
II. Case-Handling Strategy
Based on a comprehensive analysis of the entire case file, there is no dispute that the conduct constitutes the offense of operating a casino. The client voluntarily pleaded guilty and accepted punishment, while also seeking the application of a suspended sentence. To this end, the defense counsel undertook the following actions:
1. With respect to Y, who was originally ranked second in the order of indictment, the defense counsel emphasized that Y served as a dealer for a short period and obtained minimal profits, striving to have Y recognized as the third defendant with a lesser role and status.
2. By calculating the amount of suspect Y’s illicit gains, restitution was made in a timely manner before the trial, further demonstrating Y’s sincere attitude of admitting guilt and showing remorse.
3. Through continuous communication with the public security organs, the defense counsel requested that a case be opened based on clues of meritorious service, facilitated the transfer of the relevant materials by the public security organs to the court before the trial, and timely verified this matter with the public prosecutor prior to the hearing.
III. Outcome
The public prosecutor confirmed in court that the suspect had performed meritorious service. The court rendered a judgment applying a suspended sentence in accordance with the law, making Y the only defendant among those released on bail pending trial in the entire case to receive a suspended sentence.
IV. Reflections on Case Handling
With the implementation of the policy of arresting fewer suspects and exercising restraint in prosecution, individuals with relatively minor circumstances are subject toCases involving the compulsory measure of release on bail pending trialare becoming increasingly common.
However, release on bail pending trial should never be equated with the application of a suspended sentence. This is particularly true in first-tier cities, where offenses related to pornography, gambling, and drugs are generally subject to strict scrutiny, and suspended sentences are rarely applied.
When handling such cases, defense counsel should carefully identify any omitted mitigating or leniency factors in sentencing, actively assist the client in preserving evidence, communicate the client’s sincere attitude of admitting guilt and showing remorse to the case-handling authorities, and help secure the application of a suspended sentence.
About the Lawyer
Shao Jiadian, Partner at Mankun Law Firm (Shenzhen). He graduated from the National University of Singapore and has served as a lawyer, head of compliance and risk control, and Vice President of Legal Affairs at prestigious red-circle law firms, a cross-border investment platform of a central state-owned enterprise, and a multi-billion-yuan fund of funds, among other institutions. He focuses on new economy sectors such as Web3.0 and excels at creatively providing one-stop legal and compliance solutions for clients, including global structure setup for Web3 projects, license applications, project financing, real-world assets (RWA), and the establishment of crypto funds.
About Mankun
Founded in 2015, Mankun Law Firm is a boutique law firm in China specializing in the Web3.0 new economy and deeply rooted in the blockchain industry. The Mankun team members possess unique and diverse industry backgrounds, hailing from renowned legal service providers, national judicial organs, internet technology companies, crypto asset institutions, and blockchain industry think tanks.
Leveraging a profound understanding of the new economy sector, continuous attention to and research on policies and regulations, and extensive practical experience, the Mankun team is adept at providing comprehensive legal services from the perspectives of business models and legal practice. These services include business structure design, project investment and financing, transaction planning, operational compliance, resolution of complex civil and commercial disputes, prevention and control of criminal risks, and criminal defense for new economy enterprises in fields such as Web3.0, blockchain, AI, NFTs, digital collectibles, crypto funds, crypto payments, DeFi, real-world assets (RWA), and GameFi.
Mankun Law Firm is headquartered in Shanghai, with branch offices in Hong Kong (China), Silicon Valley (USA), Shenzhen, Hangzhou, Zhengzhou, Chengdu, and other locations. To meet the global compliance development needs of Web3.0 industry clients, Mankun has established local offices in major global crypto-financial hubs and selected professional local blockchain service partners, providing clients with professional legal and compliance services that combine global breadth with Chinese depth.
