Legal analysis: legal but extremely risky. First, attract people in by helping to repay, and then expand the circle through pyramid schemes, so that you can use the money in your hand to repay others. The person who comes first will taste the sweetness, but you will be one layer at a time. If one day the trader runs away with the money, the people behind will lose all their money and more people will become chopped leeks.

Legal basis: Article 2 of the Regulations on the Prevention and Disposal of Illegal Fund Raising. The term "illegal fund-raising" as mentioned in these Regulations refers to the act of absorbing funds from unspecified objects by promising to repay the principal and interest or giving other investment returns without the legal permission of the financial management department of the State Council, or in violation of the financial management regulations of the state. These Regulations shall apply to the prevention and disposal of illegal fund-raising by administrative organs. Where there are other provisions in laws and administrative regulations on illegally engaging in banking, securities, insurance, foreign exchange and other financial business activities, such provisions shall prevail. The term "the State Council financial management department" as mentioned in these Regulations refers to the People's Bank of China, the State Council financial supervision and management institution and the State Council foreign exchange management department.

Article 1 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising violates the laws and regulations of the state on financial management and absorbs funds from the public (including units and individuals). Unless otherwise stipulated in the Criminal Law, it shall be deemed as "illegally absorbing public deposits or absorbing public deposits in disguised form" as stipulated in Article 176 of the Criminal Law: (1) absorbing funds without the approval of relevant departments according to law or borrowing legal business forms; (two) through the media, promotion meetings, leaflets, mobile phone messages and other means to promote to the society; (3) Commitment to repay the principal and interest or pay the return in the form of currency, material object or equity. In a certain period of time; (four) to absorb funds from the public, that is, the social unspecified objects. It is not illegal or disguised to absorb public deposits by absorbing funds from relatives, friends or units to specific objects without publicity to the society.

Implementation Plan for Special Remediation of Equity Crowdfunding Risks II. The fifth key point and requirement of rectification is to carry out false and illegal advertising on financial products and businesses. The information released by the platform and the financier shall be true and accurate, and shall not violate the provisions of relevant laws and regulations, mislead or defraud investors with fictitious projects, or make false statements or misleading propaganda. Where the matters involved in the publicity need the approval of the competent department, they shall be consistent with the approved contents.