Core Insights - The Ministry of Public Security in China has revealed a series of typical cases of illegal fundraising in the financial sector, highlighting the prevalence of "black and gray" market activities [1][2] Group 1: Case Overview - A case in Zhongshan, Guangdong Province involved individuals using "debt resolution at a 40% discount" as a guise for illegal fundraising, establishing multiple related companies without proper qualifications [1] - From March 2023, the suspects attracted 14,000 debt clients across 28 provinces, raising over 900 million yuan in debt resolution funds [1][2] Group 2: Characteristics of Criminal Activities - The criminal activities exhibit organized and professional characteristics, with groups forming complex structures and utilizing consumer desperation to design intricate service traps [2] - The operations are misleadingly branded as "debt resolution," but they function as a Ponzi scheme, using new funds to pay off old debts without any legitimate business activities [2] - The rapid development of these criminal groups is facilitated by promotional events and online marketing, with significant outreach to the public [2] Group 3: Consumer Warnings - Consumers are advised to remain vigilant against enticing offers such as "no loan repayment," "full debt resolution," and "low-cost rights protection," and to avoid prepaying high fees [3]

Core Viewpoint - The article highlights the ongoing prevalence of fraudulent financial schemes, particularly focusing on the pyramid scheme operated by Yuzhi Financial, which promises high returns and employs aggressive recruitment tactics to expand its investor base [2][6][25]. Summary by Sections Fraudulent Operations - Yuzhi Financial presents itself as a virtual currency trading platform, claiming a cumulative return of up to 370.6% over thirty days, enticing investors with high returns while requiring them to recruit others to earn commissions [2][6]. - The scheme requires investors to pay a "self-certification deposit" of 20% of their total account balance to withdraw earnings, with withdrawal fees increasing from 10% to 30% [2][14]. - The company claims to have 3 million members, suggesting a potential scale of over 20 billion yuan, although actual figures are difficult to verify due to possible false advertising [2][3]. Regulatory Warnings - The Guangdong provincial government issued a warning about Yuzhi Financial, stating that it operates without the necessary licenses and that its app, HSEX, is unauthorized [3][4]. - The Hong Kong Stock Exchange has flagged Yuzhi Financial and its associated apps as suspicious, confirming multiple complaints regarding illegal financing activities [14][17]. Investor Experiences - Investors like Wang Qin have reported being unable to withdraw funds, realizing too late that they were part of a scam designed to extract more money from them [9][16]. - The scheme's structure relies heavily on continuous recruitment, with participants needing to bring in new investors to recoup their initial investments [12][30]. Characteristics of the Scheme - The operation is characterized by a lack of tangible projects, with promises of high monthly returns that attract new investors while paying older ones with their own funds [25][36]. - The article notes that these schemes often utilize social media and community networks to spread, making them difficult to regulate and monitor [27][36]. Broader Implications - The rise of such schemes is linked to the increasing use of virtual currencies and the lack of understanding among the public regarding investment risks [29][37]. - Legal experts emphasize the need for both regulatory action and public awareness to combat the allure of high-return investments that often lead to financial loss [37].

Core Viewpoint - The article discusses the fraudulent operations of Yuzhi Financial Co., which has been running a pyramid scheme disguised as a virtual currency trading platform, promising high returns to attract investors and requiring them to recruit others for additional rewards [1][19]. Group 1: Company Operations - Yuzhi Financial claims to have a membership of 3 million, suggesting a potential fund size exceeding 20 billion yuan based on a minimum investment threshold of 7,400 yuan [1]. - The company operates multiple apps, including HSEX, which has been flagged for illegal financial activities and lacks regulatory approval [2][10]. - Investors are required to pay a "self-certification deposit" of 20% of their total account balance to withdraw earnings, with withdrawal fees increasing from 10% to 30% [1][10]. Group 2: Investor Experiences - Investors, like Wang Qin, initially saw returns but later realized they were part of a scam when they could not withdraw their funds after a promotional event [5][12]. - The scheme involves a "static" and "dynamic" return model, where static returns are based on following trading signals, and dynamic returns are earned through recruiting new investors [7][8]. - Many investors are left searching for new projects to recover their losses, indicating a cycle of continuous recruitment and investment [3][4]. Group 3: Regulatory Response - The Guangdong provincial government issued warnings about Yuzhi Financial's illegal activities, confirming that it operates without the necessary licenses [2]. - The Hong Kong Stock Exchange has listed Yuzhi Financial and its associated apps as suspicious, indicating a lack of legitimate operations [12][13]. - Legal experts emphasize the need for stricter regulations and awareness among investors to combat such fraudulent schemes [28].

Core Viewpoint - The series of educational short videos titled "Distinguishing Right from Wrong" aims to raise public awareness and knowledge about preventing illegal financial activities, particularly focusing on typical cases of illegal fundraising [1]. Group 1: Program Overview - The program is launched under the guidance of the Inter-Ministerial Joint Conference Office for the Prevention and Crackdown of Illegal Financial Activities [1]. - It focuses on educating the public about the risks associated with illegal fundraising and enhancing their ability to prevent such activities [1]. Group 2: Case Study - A specific case is highlighted where a manager used a "cloud cattle raising" app to lure investors, claiming to have over 10,000 cattle and promising an annual return of 24% [2]. - Upon investigation, it was revealed that the operation was supported by only a few dozen cattle and involved continuously changing identification tags, leading to significant financial deception [2].

Core Viewpoint - The article discusses the fraudulent activities of the "Xinkangjia" investment platform, which has been identified as a Ponzi scheme combined with a multi-level marketing structure, leading to significant financial losses for investors [3][4][29]. Group 1: Overview of "Xinkangjia" - "Xinkangjia" platform was established in 2021, initially claiming to engage in oil spot trading and later shifting to derivatives trading, falsely associating itself with the Dubai Gold and Commodities Exchange (DGCX) [6][19]. - The platform attracted around 2 million investors with claims of high returns, reportedly involving approximately 13 billion yuan in total investments [3][4]. - DGCX has publicly denied any affiliation with "Xinkangjia," warning that the platform is unauthorized and operates without any legitimate partnership [8][9]. Group 2: Investment Structure and Operations - "Xinkangjia" employed a nine-level hierarchical structure to incentivize recruitment, with participants earning rewards for bringing in new members, creating a classic Ponzi scheme dynamic [13][19]. - The platform promised daily returns of 0.2% and used various promotional tactics, including offering luxury cars as incentives for high investments [20][19]. - Investors were required to purchase USDT (Tether) for transactions, complicating the process and leading many to transfer funds to higher-level members for conversion [22][30]. Group 3: Regulatory Environment and Risks - The Chinese government has previously banned virtual currency investments, and multiple warnings have been issued regarding the risks associated with platforms like "Xinkangjia" [23][24]. - Local authorities have identified "Xinkangjia" as a significant illegal fundraising risk, highlighting its use of high-return promises and multi-level marketing tactics [28][24]. - The article emphasizes the growing trend of such schemes leveraging stablecoins to bypass financial regulations, posing a threat to investors and the broader financial system [30][33].