Virtual Money High-Interest Eyewash: How to Step by Step Turn Investors into Accomplices?

After multiple warnings, a fraudulent investment and financial management platform operating under the guise of Virtual Money suddenly disappeared. Recently, an investment and financial management platform named "DGCX鑫慷嘉" has sparked heated discussions on social media, reportedly involving 2 million investors and a total amount of 13 billion yuan. After the platform's funds could not be withdrawn, the company's founder claimed to have gone abroad.

From a business model perspective, the platform impersonates overseas licensed exchanges, using Virtual Money investment as a pretext to attract consumers with high returns. The platform promises a daily return rate of 1% and vigorously develops downlines by setting high rewards, with profit-sharing ratios based on the number of downline members. Even when the platform can no longer fulfill withdrawals, there are still users joining in. Behind this not-so-novel eyewash, there are still many consumers willing to take risks to participate in the so-called "fool's game."

1% Daily Yield, Unable to Redeem for Second "Harvest"

An investor from Hubei shared his experience of being scammed out of 55,000 yuan on a social platform, attracting the attention of many other investors who had similar experiences. Another investor, Zhang Yi, promptly discovered that his mother had been scammed and quickly contacted the introducer to request a refund of the 15,000 yuan investment.

Investor Huang Zheng from Wuhan stated that the platform advertised that investors could earn a daily return of 1% on their principal by participating in overseas gold and oil investments, but the invested funds cannot be withdrawn within a month. Huang invested over 30,000 yuan at the end of May and is currently unable to recover it.

In addition to high returns, the platform also allows investors to quickly recover their capital and even create tens of times returns through operations such as referring new users and adding positions. However, on June 25, the platform experienced a situation where withdrawals were not possible, and the system was completely paralyzed the next day. The platform claimed that account funds were frozen due to tax evasion and demanded users to "pay taxes" at 10% of their holding amount in order to withdraw, with withdrawal fees as high as 50%.

Although many believe this is the platform's final harvesting act, there are still investors who hold onto hope. By the end of June, the platform's founder announced in a group chat that he had gone abroad and mocked the intelligence of the investors, marking the official shutdown of the platform.

Many local police remind of risks, the operating entity company has already been deregistered

As news of the inability to redeem spreads, many investors are beginning to seek help from the police. On July 7, the Public Security Bureau of Taojiang County, Hunan Province issued a risk warning, pointing out that the platform misappropriated the name of the Dubai Gold and Commodity Exchange (DGCX) to attract funds, falsely claiming to be the Chinese branch of the DGCX exchange without authorization and relevant qualifications, and promising high returns. This behavior is suspected of fundraising fraud.

In fact, starting from October 2024, regulatory authorities in multiple regions including Sichuan, Guangdong, Jiangxi, and Hunan have issued risk warnings regarding this platform, all indicating that it operates a Ponzi scheme through a pyramid selling structure. In June 2025, the Financial Office of the Hunan Provincial Committee also warned that this platform carries a significant risk of illegal fundraising.

The investigation shows that the platform mainly develops downlines through methods such as "direct push rewards" and "team commissions." The platform is divided into "four major regions" by geographical area, promotes membership development offline, organizes gatherings irregularly, and establishes WeChat groups for promotion. Levels and profit-sharing ratios are determined based on team size, with a total of 9 levels.

Tianyancha data shows that the platform's operating entity, Guizhou Xinkangjia Big Data Service Co., Ltd., was established in April 2024 and has been listed in the abnormal business directory multiple times for being unreachable. On May 18, the company applied to the registration authority for cancellation of registration due to "resolution to dissolve."

Jia Ning, a director of the Hong Kong Registered Digital Asset Analysts Association, believes that this is a typical case of illegal fundraising and fraud. The criminals have embedded traditional illegal fundraising structures into the circulation mechanism of stablecoins such as USDT, using USDT as a unit for deposits to evade the monitoring of the existing financial system on cross-border large fund transfers.

Knowing the risk means you must take responsibility; it's advisable to stay away from such "eyewash games".

It is worth noting that similar eyeglass schemes are not uncommon in the industry. These platforms typically set up virtual trading venues and develop members offline, engaging in various online investment activities, and use Virtual Money to transfer funds.

Liu Honglin, the founder of Shanghai Mankun Law Firm, pointed out that financial scams under the guise of Virtual Money still have a huge audience base. Many ordinary investors have a vague understanding of concepts such as "stablecoin", "exchange", and "blockchain", making them easily misled by packaging and rhetoric.

What is even more concerning is that during the discussions about the relevant events, there has been a lot of talk about "how to play with the funds pool." Some users boast about their early participation and timely exit, gaining high returns. There are even people posting new funds pool information in the comments section, inviting others to participate.

Yu Jianing analyzed that this behavior is a speculative mindset of risk misalignment, where participants base their individual actions on the expectation of others' losses, while overlooking the unpredictability of the market and the absolute dominance of platform operators.

Liu Honglin emphasized that knowingly participating in activities like "recruiting people" and "earning commissions" on a platform that is non-compliant and may even be suspected of scams can very likely turn participants from "victims" into "accomplices". According to judicial interpretations, even if one is not a "core member" of the organization, as long as they actively participate and reach a certain scale, they may also constitute "joint criminality".

Su Xiaorui, a senior researcher at Suxi Zhi Yan, suggests that individual investors must be clear: such behavior constitutes illegal financial activities, deviates from regulatory requirements, poses significant risks, and should be avoided.

Liu Honglin reminds us that the criteria for determining whether an investment platform is reliable lie in whether one can clearly understand the flow of funds, their use, the regulatory entity, and the party responsible for liability before investing. If these four questions cannot be answered, one should not engage with such platforms. For "investment opportunities" with unclear compliance, do not blindly believe in the so-called "early entry, early profit."