BlockBeats News, December 14th, Economic Observer revealed that Yuzhi Financial Co., Ltd. in China conducted a fund disk operation related scam under the guise of “virtual currency trading.” The “Yuzhi Financial Co., Ltd.” and its affiliated platforms (such as HSEX) claimed that investors followed Bitcoin contract operations, with a fixed daily profit of 1% (static income), and recruited additional rewards through referrals. The minimum investment starts at 7400 yuan, with a claimed total return of up to 370.6% in 30 days, doubling even during the annual event. In reality, there are no real trades, and early investors are paid with later entrants’ funds. From November 27th to December 7th, 2025, the platform prohibited defrauded users from withdrawing funds. Starting from December 8th, citing “wash trading,” the platform increased the withdrawal fee to 30%, and required a 20% “self-certification margin” before allowing withdrawals, leading to a “soft exit strategy” and a second round of harvesting investors.
The Office of the Joint Meeting for Preventing and Combating Illegal Financial Activities in Xinyi City, Guangdong Province, the Leading Group Office for Preventing and Combating Illegal Financial Activities in Yulin City, Guangxi Zhuang Autonomous Region, and the Financial Affairs Center of Shigu District, Hengyang City, Hunan Province, have all previously issued relevant risk warnings. The Hong Kong Stock Exchange has also disclosed that Yuzhi Financial and its related platforms, HSEX and HKEX, have been listed as suspicious websites multiple times and have no affiliation with the Hong Kong Stock Exchange.
