According to the court, Wang and Liu manipulated NFT sales and misled buyers with false appreciation claims and illegal profit guarantees, resulting in multi-year prison terms.
The Shanghai First Intermediate People's Court upheld convictions of Wang and Liu for fundraising fraud linked to an AI-generated digital collectibles platform. They issued 7,888–16,888 NFTs priced at 9.9–69.9 yuan, engaged in self-trading to inflate value, blocked refund requests, and promoted fictitious appreciation with a “half-price” principal guarantee. The court ruled the platform lacked licenses, the NFTs had no cultural or artistic basis, were overpriced, and its on-chain service had no comparable value—amounting to illegal public fundraising through fraud. Wang received eight years and six months in prison and Liu seven years and two months.