According to the latest Chinese Supreme Court's
1. The fundraising activity does not have ratification from proper government department .
2. The fundraiser openly advertises its fundraising activity through media, conference, SMS and internet etc.
3. The fundraiser promises depositors or investors currencies, goods, or shares in return periodically.
4. The fundraiser accepts deposits or investments from unspecified investors of the public(Chinese citizens).
The Supreme Court further explains that "if a company, which does not have government permit to issue stocks or bonds, issue virtual securities in order to absorb funding, then its fund-raising activity satisfies the first condition." This explanation complies with the condition of most BTC institutions.
If BTC companies are sued by anyone, especially the government, then the managers of the institutions will be sentenced to "illegal absorption of public funding crime" according to Article 176 of
More importantly, most BTC stock issuers collected several million dollars from IPO, or more than 6 million Chinese yuan. If they are declared guilty in the Chinese court, they will be sentenced 3~10 years in jail and 500 thousand yuan fine according to Article 176．
Interestingly, the Supreme Court states that "If illegal fund-raisers use the money they raise in normal business operation, they can be exempt from criminal punishment as long as they can return the fund to investors in time."
This is also the reason why BTC Garden return investors' fund at IPO Price right after being extorting.
Now the question is that it is you, the investor, who will face the final risk of an IPO-suspension. If you invest at a price higher than the IPO price, then the BTC company may repurchase your shares at the IPO price once they face legal risk. Technically, they will only protect themselves from criminal punishments rather than protect investors' interests.
This is only a risk disclosure of BTC Stock investment, which does not aim at any specific stock. If you like my post, please send some support to my wallet address. Thanks.