Shanghai Court Elaborates on Criminal Liability Boundaries Involving Virtual Currency "Traffic Diversion": Should Distinguish General Network Services and Acts Not Forming a Conspiracy to Commit Fraud

Shanghai No. 1 Intermediate People's Court announced a precedent case involving telecom network fraud related to virtual currency settlement and detailed the criteria for determining "traffic guiding personnel" as accomplices to fraud in telecom network fraud crimes. The defendant in the case assisted overseas fraud organizations in carrying out "traffic guiding" activities, resulting in victims being defrauded of more than 2.34 million yuan in total; the principal offender was sentenced to 13 years imprisonment and fined 300,000 yuan. Shanghai No. 1 Intermediate People's Court pointed out that in telecom network fraud cases, "traffic guiding personnel" may constitute accomplices to fraud or the crime of illegally utilizing information networks depending on the specific circumstances. The key lies in determining whether they formed clear criminal intent contact with the upstream fraud criminal gang and whether there exists stable collaborative division of labor. In judicial practice, when determining the criminal responsibility of "traffic guiding personnel", factors such as their role in the crime chain, degree of organization and management, contact with upstream criminal personnel, method of profit, and manifestation of abnormal behavior should be comprehensively considered. A distinction should be made between acts merely providing general network services without forming fraud conspiracy and "traffic guiding" acts where one knowingly participates in the implementation of fraud.