Core Viewpoint - The article highlights the collapse of a virtual currency investment platform named "Yuzhi Financial," which operated under the guise of high returns and advanced technology, ultimately leading to significant investor losses due to its fraudulent practices [1][4][27]. Summary by Sections Platform Operations and Fraudulent Practices - "Yuzhi Financial" promised investors a staggering annualized return of over 360% through its so-called "6G Hongmeng System," which was falsely claimed to provide real-time trading signals [5][24]. - The platform employed a Ponzi scheme structure, using funds from new investors to pay returns to earlier investors, leading to its eventual collapse when the funding chain broke [1][10][12]. Investor Experiences - Many investors, lured by promises of high returns, found themselves unable to withdraw their funds as the platform entered a "runaway" state, with reports of users being unable to cash out their investments [1][2]. - A notable tactic involved the platform's "leader" demanding a "self-certification deposit" of 20% of total assets from users, further locking their funds for 60 days under the pretense of maintaining platform health [2][21]. Marketing and Recruitment Strategies - The platform utilized a multi-level distribution system disguised as investment opportunities, incentivizing users to recruit others, which accelerated the spread of the scam [7][10]. - Promotional materials claimed a user base of 3 million, a figure that lacked substantiation and was likely inflated to attract more investors [7][10]. Regulatory Context and Challenges - The collapse occurred against a backdrop of intensified regulatory scrutiny on virtual currencies in China, with authorities reiterating that such activities are illegal and pose significant risks [27][28]. - Despite clear warnings from regulatory bodies, the platform continued to operate, exploiting loopholes and the lack of effective enforcement against such schemes [30]. Psychological Factors and Investor Behavior - The article notes a concerning trend where investors, even after experiencing losses, continue to seek new investment opportunities in similar schemes, driven by a gambler's mentality [30].