Yuzhi Financial Exposed Wearing the "Cryptocurrency Exchange" Cloak to Carry Out a Fund Ponzi Scheme

**Quick Update: China’s Yuzhi Financial Exposed as Virtual Currency Ponzi Scam** On December 14, *The Economic Observer* reported that China-based Yuzhi Financial Co., Ltd. ran a fund scam under the guise of virtual currency trading. The firm and its affiliated platforms (including HSEX) marketed false Bitcoin contract trades, promising: - Fixed 1% daily static profits - Extra “dynamic rewards” for referring new investors - Minimum 7,400 yuan investment - Up to 370.6% cumulative returns in 30 days (or doubling during annual events) In reality, no real trades occurred—Yuzhi relied on new investors’ funds to pay old ones (a classic Ponzi scheme). **Withdrawal Restrictions:** - Nov 27–Dec 7, 2025: Blocked all user withdrawals - Starting Dec 8: Cited “wash trades” to impose 30% withdrawal fees + 20% “self-certified margin” for cashouts, triggering a “soft exit scam” and double losses for investors **Risk Alerts & Clarifications:** - Local bodies in Xinyi (Guangdong), Yulin (Guangxi), and Hengyang’s Shigu District (Hunan) previously issued warnings. - Hong Kong Exchanges and Clearing Limited (HKEX) confirmed Yuzhi, HSEX, and related platforms are repeatedly listed as suspicious websites with no connection to HKEX.