Legal basis: Article 224 of the Criminal Law of People's Republic of China (PRC) organizes and leads anyone who, in the name of selling goods or providing services, asks participants to pay fees or purchase goods or services to obtain membership, forms a hierarchy in a certain order, and directly or indirectly lures or coerces participants to continue developing pyramid schemes that others participate in, defrauding property and disrupting economic and social order, based on the number of people who have developed. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.