Crypto news update: Chinese regulators flagged Yuzhi Financial Co., Ltd. and its affiliates, including HSEX, for operating a fund pool disguised as virtual currency trading. Investigations allege investors were promised a fixed 1% daily return (static income) plus referral bonuses, with claimed ROI up to 370.6% in 30 days and potential doubling during events. In reality, there were no underlying trades; new funds were used to pay earlier participants.
From Nov 27 to Dec 7, 2025, withdrawal access reportedly stalled. On Dec 8, operators cited “wash trading” and raised the withdrawal fee to 30%, plus a 20% self-certified margin requirement, framing a soft exit scam that pressures investors to stay.
Regulators in Xinyi City, Yulin City, Hengyang City, and Shigu District issued risk alerts. The Hong Kong Stock Exchange (HKEX) stated that Yuzhi Financial and its platforms (HSEX and HKEX) have no affiliation with HKEX and have been listed as suspicious websites. Caution is advised for readers assessing crypto-related investments.