A large-scale virtual currency financial fraud scheme, under the guise of “State-owned Enterprise Endorsement” and “Earn 2% daily,” has recently collapsed entirely in China. The platform called “DGCX Xinkangjia” claimed to be the “China representative office of the Dubai Gold Commodity Exchange,” is suspected of illegal fundraising and pyramid selling, attracting over 2 million participants. After siphoning off more than 13 billion yuan in funds, the platform suddenly shut down, clearing its social media accounts immediately. Victims of this incident are scattered across regions such as Guangdong, Guangxi, and Guizhou, with many reporting to the police for legal recourse.
The “Xinkangjia” platform claimed that users only needed to invest in USDT (Tether), a stablecoin pegged to the US dollar, to earn daily returns ranging from 1% to 2%, with an annualized return of up to 300%. The investment threshold was as low as 1,000 USDT, but most users did not have real trading permissions and instead entrusted their funds to so-called “superiors” to operate on their behalf. The platform’s instructors promoted “copy trading,” but according to victims, the market trends were fabricated in the background to lure investors into continuously adding more capital.
Claiming to have authorization from the Dubai Gold and Commodities Exchange (DGCX), “Xinkangjia” introduced the so-called “Middle Eastern Oil Futures Hedge Project” and even fabricated contract signing videos, asserting “State-owned Enterprise participation” and “Dual-track operation of energy and forex.” However, by the end of 2024, the Dubai Financial Services Authority had issued three statements denying any cooperation or authorization relationship with the platform.
At a technical level, the “Xinkangjia” platform used servers in the United States to build its trading system and concealed capital flows using Cloudflare and “coin mixers” technology. Some analysis points to the platform’s suspected involvement in large-scale cross-border money laundering activities.
Several investors shared their experiences of being swindled on July 14. Mr. Huang from Guizhou invested his savings over several years and incurred losses exceeding 90%. He expressed helplessness, stating, “Reporting to the police is futile; they said the boss has fled abroad, mocking us for lacking intelligence.”
Ms. Jiang from Yuhang, Zhejiang, mortgaged her property and invested 300,000 yuan at her son’s urging, just to “activate the account” for withdrawing the principal and promised 200% returns. However, the platform suddenly closed a few days later, leaving her realizing she had been deceived. Her son claimed to be a “brigadier general in the Eastern Front” of the platform and had already received a commission of 600,000 yuan to buy a car. She mentioned, “I never expected my money would vanish instantly. I immediately reported to the police and await how they will handle it.”
According to information provided by investors, Xinkangjia operated with a pyramid-style MLM structure, dividing the country into four major regions and further categorizing participants into positions like “Commander,” “General,” “Colonel,” and “Sergeant” to gain promotion and profit-sharing through recruiting others.
On June 26, the “Xinkangjia” platform abruptly froze its withdrawal function, and leaked messages from the company’s founder, Huang Xin, in a WeChat group claimed he was abroad, declaring the platform’s formal cessation. He teased investors, saying, “Your intelligence doesn’t match your wealth, and I’ve matched them for you.” Outrage grew over his remarks, spreading rapidly in various rights protection groups.
In preliminary estimates by investors, the actual number of victims in the Xinkangjia fraud case may exceed 2 million people, with the involved funds far surpassing the officially announced 13 billion yuan. Media outlets like Caixin and Yicai reported the Xinkangjia platform fraudulently operated under the name of “DGCX,” being a scam masterminded group.
On popular Chinese internet portals, public accounts have continuously exposed the fraudulent practices of Xinkangjia, yet avoiding the responsibility the authorities should assume for the fraud. Mainland financial media have reported that the Yangshan County police in Guangdong province has issued a notice, outlining the platform’s alleged involvement in cross-border fund pyramid schemes. Several public security agencies have mentioned that the platform used virtual currency for money laundering and transferred assets to overseas through encrypted wallets, making fund recovery extremely challenging.
An academic, Zhang Kun (pseudonym), following this case, told Dajiyuan, “Such cases persist due to investors’ insufficient financial literacy, as well as close ties with local protectionism. Some local officials colluded with the platform prior to its collapse to assist the mastermind in fleeing, indicating premeditation.”
Zhang also mentioned, “Xinkangjia” is the largest-scale virtual currency fund scam since 2025, exposing issues with China’s sluggish supervision and weak cross-border law enforcement.
According to public records, the Guizhou Xinkangjia Big Data Service Co., Ltd. was established in March 2021, with a registered capital of 30 million yuan, zero paid-up capital, and the actual controlling person’s information remains undisclosed.