Legal basis:

Article 224-1 of the Criminal Law of People's Republic of China (PRC), in the name of selling goods and providing services, organizes and leads participants to obtain the qualification to join, forms a hierarchy in a certain order, directly or indirectly uses the number of people who have developed as the basis for remuneration or kickbacks, induces or coerces participants to continue to develop pyramid schemes attended by others, defrauds property and disrupts economic and social order, and is sentenced to fixed-term imprisonment of not more than five years or criminal detention and also fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.