Core Viewpoint - The article discusses a significant scam involving a trading platform named "DGCX Xin Kang Jia Data," which defrauded over 200,000 investors, amounting to nearly 13 billion yuan, by misusing the concept of stablecoins like USDT [2][3][4][28]. Group 1: Scam Overview - The platform, based in Guiyang, disappeared in late June, leading to a police investigation confirming it was involved in fundraising fraud [3][4]. - The mastermind behind the scam, Huang Xin, has a history of fraudulent activities and has previously been convicted for involvement in a large-scale pyramid scheme [22][23][25]. - The scam was designed with a sophisticated structure, including a multi-level marketing system that incentivized members to recruit others, promising high returns on investments [13][20]. Group 2: Mechanism of the Scam - The platform claimed to use a proprietary algorithm to predict market fluctuations in gold and oil, offering daily returns of 1% on investments [14][15]. - Investors were required to convert their funds into USDT before transferring them to the platform, which facilitated the concealment of financial transactions and evasion of regulatory scrutiny [30][32]. - Just before the platform collapsed, it demanded additional funds from users under the guise of system upgrades, leading many to invest even more in hopes of recovering their initial investments [16][18][19]. Group 3: Regulatory Implications - The article highlights the gap between technological advancements in financial tools like stablecoins and the ability of regulatory bodies to keep pace, resulting in increased risks for investors [8][33][34]. - Despite warnings from financial regulators about the platform's illegal activities, many investors dismissed these alerts, believing the project was legitimate [34][35]. - The article notes that regulatory discussions regarding stablecoin oversight are intensifying globally, indicating a shift towards more stringent controls in the financial sector [36].