Core Viewpoint - The recent collapse of the "Xin Kang Jia" Ponzi scheme, which promised a daily interest rate of 2%, has heightened societal awareness and vigilance against new forms of online fraud [1] Regulatory Warnings - Multiple financial regulatory bodies across various provinces, including Guangdong, Yunnan, and Hunan, have issued warnings about illegal fundraising risks associated with virtual currencies since July [2][3] - Shenzhen and Guangzhou have specifically highlighted that illegal institutions are using terms like "financial innovation" and "digital assets" to mislead the public and engage in illegal fundraising activities [2] Characteristics of Online Scams - New online scams often share common traits such as exaggerated claims, false promises, and high returns, with phrases like "guaranteed profits" and "fixed high returns" frequently used [1] - These scams typically promise unrealistically high returns, such as a daily yield of 1% or 2%, leading to annualized returns exceeding 300% [1] Legal Implications - Legal experts categorize these scams as "pyramid-style fundraising fraud," which can lead to severe criminal charges, including life imprisonment for the organizers and key participants [1] - The involvement in such scams can result in criminal liability for all parties involved, including promoters and core members [1] Types of Scams - Various types of scams have emerged, including investment fraud, consumer rebate schemes, and fictitious project scams, all characterized by their deceptive nature and complexity [9][10] - Investment scams often impersonate legitimate institutions and utilize fake financial products to lure investors, while consumer rebate scams disguise themselves as community-oriented initiatives [10] Mechanisms of Fraud - Many scams employ a "referral" mechanism to encourage users to promote projects, promising tiered rewards for recruitment [11] - The structure of these scams often includes both "static" and "dynamic" returns, where static returns are fixed and dynamic returns depend on recruiting new participants [12] Risk Awareness - Regulatory bodies emphasize the importance of understanding the complexities and volatility of digital currencies and encourage the public to avoid any form of virtual currency speculation [8] - Participants in virtual currency transactions face significant legal risks, as these activities are deemed illegal under current regulations [7]

Core Viewpoint - The "DGCX Xin Kang Jia" investment platform has been reported to be a fraudulent scheme, misleading investors by using the name of the Dubai Gold and Commodities Exchange (DGCX) and promising high returns, leading to significant financial losses for many investors [3][7]. Group 1: Company Overview - "DGCX Xin Kang Jia" has been accused of operating under false pretenses, claiming to be a Chinese branch of DGCX without any authorization or regulatory approval from Chinese financial authorities [7]. - The platform utilized a multi-level marketing structure, incentivizing users to recruit others with promises of high commissions and rewards, resembling a Ponzi scheme [8][9]. Group 2: Investor Impact - Many investors have reported being deceived by the platform's high return promises, with some individuals losing substantial amounts of money [3][11]. - The platform's use of USDT (Tether) as a transaction medium complicates the recovery of lost funds, as virtual currencies can be difficult to trace and reclaim once transferred [12]. Group 3: Legal and Regulatory Issues - Legal experts have indicated that the platform's operations may constitute collective fraud, and participants who knowingly promote the scheme could face charges related to organized crime or pyramid selling [11]. - Multiple law enforcement agencies have issued warnings about the risks associated with "Xin Kang Jia," highlighting its fraudulent activities and illegal fundraising practices [6][10]. Group 4: Ongoing Risks - Despite the warnings and the platform's fraudulent nature being exposed, similar schemes continue to emerge online, indicating a persistent risk for potential investors [10]. - The platform's management has reportedly fled overseas, complicating legal actions and recovery efforts for affected investors [11].