According to Foresight News , the Economic Observer published an article yesterday exposing the Ponzi scheme of Yuzhi Financial Co., Ltd. The article stated that the scam disguised itself as "virtual currency trading," attracting investors with promises of "cumulative returns of up to 370.6% in 30 days." Investors were then required to recruit others, with high rewards promised based on the number of recruits and the amount of investment, forming a pyramid scheme.
On August 8th, HSEX, one of the virtual asset trading apps under Yuzhi Financial, notified users that they needed to pay a "self-certification margin" of 20% of their total account balance before they could withdraw profits, and the withdrawal fee also increased from 10% to 30%. A group leader stated that Yuzhi Financial is currently in a "soft collapse" state, meaning that the app can still be opened and used, but withdrawals are impossible. The withdrawal conditions are actually a second round of exploitation, and if the app is shut down and cannot be opened, it will be the final collapse.
On November 27, the Joint Office for Preventing and Combating Illegal Financial Activities in Xinyi City, Guangdong Province, issued a letter to the public, warning that certain institutions or individuals are suspected of engaging in illegal financial activities under the name of "X-Zhi Financial Co., Ltd.", posing significant risks. An investigation revealed that "X-Zhi Financial Co., Ltd." has not obtained a business license issued by the national financial regulatory authorities, and its "HSEX" app has not been authorized or registered in any way.
According to the Economic Observer, assuming Yuzhi Financial's claim of 3 million members is true, and considering the minimum investment threshold of 7,400 yuan, the size of this Ponzi scheme exceeds 20 billion yuan. However, considering potential false advertising, dispersed investors, and numerous apps, the actual size of the platform is difficult to determine, and there is currently no official channel disclosing the true amount.
