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].