Navigating Legal Minefields in Web3 Startups: Lessons from the Yescoin Founder's Arrest

　　The recent arrest of Zhang, co-founder of Yescoin, a Ton ecosystem mini-game platform, has sent shockwaves through the Web3 community, highlighting critical compliance issues in blockchain entrepreneurship. This case, which escalated from a commercial dispute to a criminal investigation, offers valuable insights for Web3 founders navigating the complex legal landscape.

　　Case Background:

　　In February 2025, Zhang was apprehended in Hangzhou on charges of "illegally obtaining computer information system data," a serious offense under Chinese criminal law. The arrest followed an internal conflict with co-founder Wang over partnership status and platform control. According to industry reports, the dispute intensified when Zhang's team allegedly revoked Wang's access to critical system data in November 2024.

　　Legal Implications:

　　The charge against Zhang falls under Article 285, Paragraph 2 of China's Criminal Law, which prohibits unauthorized access to computer systems and data theft. This offense carries severe penalties, ranging from three years' imprisonment for serious cases to up to seven years for particularly severe violations. While specific details of Zhang's alleged violations remain undisclosed, legal experts suggest the case likely involves substantial financial implications, potentially meeting the "serious circumstances" threshold defined by judicial interpretations.

　　Web3 Compliance Challenges:

　　This case underscores the growing legal risks in Web3 entrepreneurship, particularly in three critical areas:

　　1. Partnership Agreements: The absence of clear partnership terms and equity arrangements often leads to disputes as projects gain traction and value.

　　2. Data Access Control: The decentralized nature of Web3 projects creates unique challenges in managing system access and data security.

　　3. Criminal Liability: Increasingly, commercial disputes are escalating into criminal cases, with charges ranging from data theft to tax-related offenses.

　　Proactive Legal Strategies:

　　To mitigate these risks, Web3 founders should prioritize:

　　1. Comprehensive Legal Documentation: Engage professional legal counsel to draft and review all partnership agreements, equity arrangements, and operational protocols.

　　2. Access Control Protocols: Implement robust systems for managing data access and system permissions, with clear audit trails.

　　3. Regular Compliance Audits: Conduct periodic legal reviews to identify and address potential compliance gaps.

　　4. Specialized Legal Counsel: Retain Web3-savvy legal advisors who understand both the technical and regulatory aspects of blockchain projects.

　　The Yescoin case serves as a cautionary tale for Web3 entrepreneurs, emphasizing the importance of proactive legal planning and compliance measures. As the Web3 ecosystem continues to evolve, founders must balance innovation with legal prudence to avoid becoming entangled in costly and reputation-damaging legal disputes.

　　By learning from such cases and implementing robust legal safeguards, Web3 startups can focus on innovation while minimizing legal risks, ultimately contributing to the sustainable growth of the blockchain ecosystem.