An Examination of Lexon Cryptocurrency from the Perspective of Criminal Law and Islamic Jurisprudence with Emphasis on the Teachings of Imam Reza (A.S.)

Yari, Mohammad; Fathi, Morteza

doi:10.22034/ijs.2025.428563.1193

An Examination of Lexon Cryptocurrency from the Perspective of Criminal Law and Islamic Jurisprudence with Emphasis on the Teachings of Imam Reza (A.S.)

Document Type : Original Article

Authors

mohammad yari ¹

morteza fathi ²

¹ Master’s student, Department of Criminal Law and Criminology, Faculty of Law, University of Qom, Qom, Iran.

² Assistant Professor, Department of Criminal Law and Criminology, Faculty of Law, University of Qom, Qom, Iran.

10.22034/ijs.2025.428563.1193

Abstract

In recent years, the phenomenon of pyramid schemes has become a significant economic and social problem due to their increasing proliferation. A modern example of this phenomenon is the cryptocurrency known as “Luxon,” which has gained notoriety in Iran, while the true identity of its founders and their place of residence remain unknown. Pyramid schemes are essentially a deviant form of unethical network marketing and have fundamental differences from legitimate and lawful network marketing. Both often operate under the guise of companies with specific structures, but the economic effects and consequences of pyramid activities create significant problems for the economic systems of countries. The fundamental issue in this context is examining the approach of Iranian criminal law and Islamic jurisprudence towards cryptocurrencies, including Luxon. Research conducted using a descriptive-analytical method indicates that the majority of jurists and grand religious authorities have explicitly, or as a precautionary principle, issued rulings prohibiting transactions involving digital currencies. In contrast, some authorities have deemed it permissible provided these transactions do not contravene current national laws. From a criminal law perspective, the legislature’s response to this phenomenon first occurred in 2005 by criminalizing it through the “Single Article Added to the Law on Punishment of Disruptors of the Country’s Economic System.” According to this regulation, the material element of the crime includes establishing, accepting agency for, and recruiting members for a company or group with the aim of earning income from the increase in members, and its mental element is considered the knowledge and intent to commit the criminal act.

Keywords

Network Marketing

Pyramid Scheme

Luxon Cryptocurrency

Economic System

Razavi Teachings

20.1001.1.29811341.1403.2.6.4.2

Subjects

امام رضا علیه السلام و علوم حقوقی

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