Compliance Issues in Web3 Entrepreneurship from the Dispute of a Social Currency Platform Founder

Recently, a business dispute involving the founder of a certain social coin platform has attracted widespread attention. This dispute escalated from a commercial disagreement to a criminal case, leading to differing opinions from various parties. As a criminal lawyer focused on the Web3 field, although I have not had direct access to the case materials, based on my understanding of Web3 entrepreneurs and my past experience handling related cases, I would like to share some insights on compliance issues in Web3 entrepreneurship.

Event Background

According to multiple media reports, a social coin platform has sparked controversy due to business disputes among partners. On February 12, 2025, the person involved, Zhang, was arrested by the police in Hangzhou on suspicion of "illegally obtaining data from computer information systems." The next day, Zhang was taken to Shanghai for further investigation. It should be noted that criminal cases typically require multiple stages, including public security investigations and prosecution reviews by the procuratorate, before entering the court trial stage, which may take more than six months.

According to public information, the core of the dispute lies in the differing perceptions of Zhang and Wang regarding their roles and rights in the project. Zhang's team believes they are at a partner level, while Wang denies this claim. After unsuccessful negotiations between the two parties, the team led by Zhang removed the data account permissions of the software owner in November 2024, which may be the direct cause of the incident.

Analysis of the Charges Involved

The crime of "illegally obtaining data from computer information systems" is defined in the second clause of Article 285 of our criminal law. This crime mainly targets behaviors that violate national regulations by illegally obtaining or controlling data from computer information systems. Depending on the severity of the circumstances, it can be divided into two sentencing categories: for severe circumstances, the punishment can be imprisonment for up to three years or detention, and a fine may be imposed or independently imposed; for particularly severe circumstances, the punishment can be imprisonment for more than three years and less than seven years, and a fine will be imposed.

The criteria for determining the severity of the situation include: obtaining a certain quantity of specific types of identity authentication information, illegal gains or causing economic losses reaching a certain amount, etc. At present, it is unclear which specific regulation Zhang has violated, but based on experience, it is likely related to illegal gains or causing economic losses.

Web3 Startup Compliance Suggestions

This incident shows that partnership disputes in Web3 entrepreneurship often stem from unclear equity arrangements in the early stages. In the startup phase, the relationship may rely on "brotherly bonds," but once the project generates considerable returns, issues of profit distribution can easily lead to disputes.

In the past, the common cases of shareholders "treating each other with punishment" mostly involved "embezzlement" or "tax-related crimes". With the increase of Web3 companies, some computer-related crimes have also begun to emerge in shareholder disputes, which is a new characteristic of criminal risks in the Web3 field.

Therefore, young Web3 entrepreneurs must pay attention to pre-compliance:

1. Improve legal documents: Do not rely solely on templates downloaded from the internet; it is best to hire a professional lawyer to draft or review.

2. Clarify equity arrangements: Clearly define the rights and interests of all parties at the startup phase to avoid future disputes.

3. Hire professional consultants: It is advisable to hire lawyers familiar with Web3 and criminal defense as consultants to timely identify and avoid legal risks.

4. Emphasize Compliance Management: Establish a sound corporate governance structure and internal control system.

5. Protect intellectual property: Implement protective measures for core technologies and data.

6. Comply with data regulations: Strictly adhere to laws and regulations related to data protection and cybersecurity.

7. Regular legal check-ups: Regularly conduct legal risk assessments of the company's business activities.

Many legal risks can be avoided through prior compliance preparations. Even in the event of a dispute, a win-win situation may be achieved through reasonable communication. The lack of professional legal guidance may lead to a deteriorating situation resulting in a lose-lose outcome. Therefore, Web3 entrepreneurs should prioritize compliance construction to lay a solid legal foundation for the long-term development of their businesses.