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Research on Capital Network of the Pyramid Scheme Organization Based on Exponential Random Graph Models

As a common method in the study of organized crime, social network analysis has unique advantages in analyzing the organizational structure of the pyramid scheme. This paper uses the exponential random graph models in social network analysis to analyse the capital network of the pyramid scheme organization. The results show that the direction of capital flow in pyramid scheme organization is very uniform, all flows to the central node. There are not flows between communities, the capitals in the same capital. There are capitals between the accused. The financial relationship between members is not obvious.