(Yicai Global) Jan. 12 -- The main Chinese perpetrator behind the South Korean cryptocurrency DiGit Coin, which used network marketing to scam its more than half a million members in China out of CNY1.3 billion (USD201 million), has been brought to account, China Judgments Online reported, citing a recent court verdict.

Li Haoyan was sentenced to five and a half years in prison and fined CNY600,000 (USD93,000) for her role in assisting and propagating the pyramid scheme, the local people's court in Yancheng Economic and Technological Development Zone, southeastern Jiangsu province said. Multi-level marketing is illegal in China and so is the dealing in any cryptocurrencies other than the country’s official digital Chinese yuan.

Li, who worked at the DCG headquarters in South Korea from July 2015 to December 2016, helped to promote the virtual currency in China by translating marketing documents and using her bank account at the Industrial and Commercial Bank of China to help transfer funds.

The organization set up a cryptocurrency trading platform called www.digitcoin.in, which despite having very little real business of its own, lured customers with high rebates. It set up a China HQ, held DGC conferences, invited Chinese members to visit its offices in South Korea and used other tactics. Members who recommended other members would be granted a fee of between USD100 to USD500.

As of Feb. 20, 2017, DGC, formerly known as ShareCoin, had more than 556,000 Chinese members spread over 712 marketing levels.

The court is also taking action against Yeo Yeon-Mo and several other South Korean nationals for their role in the con, it said.

Editor: Kim Taylor