Core Viewpoint - The "Phoenix Tide" app, later rebranded as "Phoenix Vxun," has been identified as a pyramid scheme by multiple local authorities, leading to the arrest of its actual controller, Ye Jianyi, for suspected "pyramid scheme crimes" [1][3][11] Company Overview - "Phoenix Tide" is operated by Hainan Guohai Innovation Technology Co., Ltd., established on September 26, 2021, with a registered capital of 10 million yuan, fully owned by Ye Jianyi [3][4] - The company claims to be a digital economy platform aimed at rural revitalization and economic empowerment, promoting a "zero cost, zero threshold" model for earning income through app usage [3][8] Legal Issues - Ye Jianyi has a criminal history, having previously served time for theft and leading pyramid schemes, with a notable case involving over 60 participants and more than 1.3 million yuan in funds [5][6] - The company was listed in the operating abnormality record by Haikou Market Supervision Administration due to being unreachable at its registered address [3][4] Operational Model - The app promotes four participation models, including options that require no financial investment but involve time commitment, and others that involve monetary investment with promises of high returns [8][9] - Users are encouraged to accumulate virtual points ("Phoenix Coins") through daily tasks, which can then be converted into investment packages with exaggerated profit claims [13][14] User Impact - Many participants have reported significant financial losses, with some investing up to 400,000 yuan, leading to severe personal and familial consequences [9][10] - Reports indicate that after the app's closure, it transitioned to new platforms, further complicating recovery efforts for victims [10][11] Regulatory Response - Multiple government agencies have issued warnings about the app's operations, highlighting its similarities to traditional pyramid schemes [11][15] - Despite these warnings, a significant number of users remain engaged, driven by greed or misinformation [15][16]