The former "crypto dream" of publicly traded companies: the legal storm after PlayCoin rose from 1 cent to over ten dollars

NullWhisperer · 2026-01-15T08:04:14+00:00

A publicly listed company has restarted litigation, accusing the former CEO and team of infringing on the company's interests, with a claim of 200 million yuan. The case began in 2020, with the former CEO suspected of embezzling funds for virtual currency speculation, involving company restructuring and legal risks.

NullWhisperer

2026-01-15 08:04:14

Abstract generation in progress

【Blockchain Rhythm】Another new development in an old case. On January 15th, a publicly listed company (Nasdaq code XNET) resumed litigation against its former CEO and core team, accusing them of various means of harming the company’s interests, with claims reaching up to 200 million yuan. The court in Shenzhen has officially accepted the case.

In fact, this story started long ago. As early as September 2020, the company publicly accused the former CEO of embezzling tens of millions of yuan to speculate in virtual currencies, and even fabricated false contracts through relatives to siphon company funds. The former CEO had already left the country with his lover in April 2020.

To understand this case, we need to go back to June 2017. At that time, the former CEO had just been appointed, and a month later, the company renamed one of its products and subsequently issued a corresponding virtual currency. The entire logic also changed: from cash subsidies to a virtual currency reward system. As a result, the original 4 million users suddenly turned into a mining army.

The price of the virtual currency soared ridiculously—from an initial 1 cent to over ten yuan. During that period, the company’s daily revenue from hardware sales easily exceeded 100 million yuan, marking a rare highlight in the company’s history. But now it seems that behind this virtual currency frenzy, many legal risks have been hidden.

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just_another_fish

· 4h ago

Regarding Wankecoin, I've known for a long time that this guy is unreliable. The scam of air coins and cutting leeks is his specialty. This trick isn't new; just change the name and issue coins, deceive retail investors into buying in, then run away, trapping many people. The CEO running off with the funds is really the ultimate move, and he even brought a lover along. No one has thicker skin than him. The court has finally started to take action. Wait, only suing after five or six years? This efficiency is really slow. How many people have been ruined by these operations in the crypto world? Replacing cash subsidies with virtual currency rewards is obviously a way for the project team to drain the company.

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GhostInTheChain

· 01-15 08:34

Haha, this is the fate of the crypto world. Everyone wants to play financial games, but in the end, they get taught a lesson by the court.

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GamefiHarvester

· 01-15 08:29

Haha, isn't this the same as the PlayCoin thing? I almost got scammed back then, but luckily I didn't fall for it.

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SighingCashier

· 01-15 08:27

The most clever way to cut leeks in the crypto world is like this: converting cash into virtual currency, completing the wealth transfer in one second. No wonder they want to run away.

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BearMarketGardener

· 01-15 08:21

Once again, it's the story of crypto executives fleeing. Truly incredible. Still daring to run away with their lovers... The 2017 wave was really crazy. Changing a name to issue tokens, now everything has to be repaid. This CEO has quite a big nerve. Embezzling tens of millions and still alive today, which shows the money definitely went in. Play-to-earn tokens skyrocketed and then plummeted. Where are the chives who entered at that time now... Claimed 200 million in compensation, but it feels like they won't get much in the end. Assets have probably been transferred already. That's how the crypto world is—one dares to issue, another dares to speculate, and in the end, it's all about harvesting and re-harvesting. The head of a listed company playing with virtual currency—if this was exposed now, it would probably cause a huge scandal. The question is, how did he go abroad in 2020? Where did this money come from? Will the court be able to recover it this time? It seems difficult to win such cases.

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MultiSigFailMaster

· 01-15 08:12

Haha, it's the same old trick again. When the crypto dream shatters, you still have to lose money. --- Wait, diverting hundreds of millions of virtual currency for speculation? How bad must the losses be? --- Issuing tokens in 2017, and only now settling accounts? So slow. --- Running away with a lover—this move is truly top-notch. They even have to call him back to court. --- Switching from cash subsidies to virtual currency rewards—this turnaround definitely costs a lot. --- Claiming 200 million in damages and actually getting it back? No way, it was transferred long ago. --- Cash out through fake contracts—this is how listed companies operate? --- The former CEO's move is a textbook-level escape. --- The tricks in the crypto world are deep; even listed companies can't escape.

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