Warning! China’s "DGCX Xinkangjia" has been exposed in a 13 billion RMB fraud case, with 2 million victims, revealing the high-yield trap.

Under the wave of digital finance, the temptation of high returns often comes with tremendous risks. Recently, the Chinese investment community was shocked by a massive fraud case: a platform named "DGCX Xin Kang Jia" impersonated the Dubai Gold and Commodities Exchange (DGCX) and illegally siphoned off as much as 13 billion RMB in just two years, resulting in over 2 million victims. This case not only has a large scale but also reveals how criminals exploit emerging concepts and human weaknesses to weave seemingly beautiful wealth traps. The Public Security Bureau of Taojiang County, Hunan Province, has issued a warning, urging the public to remain vigilant and not to engage in such unapproved investment activities.

1. Huge capital inflow: The true face of DGCX Xinkangjia

According to a report from the Public Security Bureau of Taojiang County, Hunan Province, some members of the public have invested through the "DGCX 鑫康嘉" platform upon the recommendation of others. This platform falsely uses the name of the Dubai Gold and Commodities Exchange (DGCX) to attract funds and is, in fact, an unauthorized and unqualified illegal platform that promises high returns and lures members with commission incentives. Since June 25, this platform has been unable to process withdrawals normally, suspected of a broken capital chain, posing a significant risk of fraudulent fundraising.

The announcement pointed out that the DGCX Xinkangjia platform has been online since May 2023, using "Dubai official authorization" as a gimmick, claiming to focus on dual investments in gold and cryptocurrency. In reality, DGCX has never authorized related businesses, and the entire DGCX Xinkangjia website and app were built by its own team, filled with a "high-tech exterior," but lacking any formal financial products. The police have classified it as a fundraising scam.

2. Fraud Chain: High Returns, Multi-level Marketing, and Withdrawal Barriers

According to community members, early members of DGCX Xinkangjia could see a 2% return on their accounts daily, which quickly attracted new influx of funds. Subsequently, the platform raised the withdrawal threshold, increasing the handling fee from 5% to 10%, and for amounts exceeding 50,000 RMB, there would be a 30 working day wait. Therefore, investors only saw their funds double, while their cash was stuck in the system.

In addition to expanding its reach, the operating team also designed an "upgrade system" where members can earn profit sharing by bringing in new participants, creating a rapidly spreading pyramid scheme within familiar social circles. Some netizens bluntly stated that this is a "closed invitation code entry familiar scheme." Just before the collapse, the platform released an announcement about a "system upgrade," requiring additional funds to unlock old accounts, even proclaiming the absurd reward of "invest 500,000 to receive a Tesla." According to statistics, the total amount involved is approximately 13 billion RMB.

III. Regulatory Failure: Why Did the Warning Signals Not Work?

It is worth mentioning that Sichuan Gongxian issued a warning in October 2024, and the Hunan Provincial Financial Office and Dubai Multi Commodities Centre (DMCC) also reminded again in April this year, but the information has not yet fully reached the investment site. This also highlights the challenges in information dissemination and the popularization of financial literacy.

Currently, the police have frozen assets worth 120 million yuan and arrested several key suspects, but the main culprit, Huang Xin, allegedly transferred funds to the Cayman Islands through a USDT mixer, making recovery much more difficult. Victims have also posted screenshots of their deposits on social media, lamenting, "In the end, I put up my mortgage and education funds, and now I can't even get my principal back."

4. Investment Self-Protect: Three Major Checks to Avoid Becoming the Next Victim

The collapse of "DGCX Xinkangjia" has left 2 million people with nothing, reminding us that high returns = high risks is not just a slogan, but a necessary lesson. To avoid becoming the next victim, investors should keep the following three key points in mind:

Beware of unusually high returns: Any project that guarantees "steady profits" or returns that are unusually high compared to the market should be approached with caution and careful consideration.

Verify the platform's regulatory qualifications: Confirm whether the platform is officially regulated, especially when it claims to be associated with international organizations; it is essential to verify this on official websites.

Avoid pyramid schemes and withdrawal obstacles: As long as the model requires "developing downlines" or "increasing investment to withdraw", it should be regarded as a red flag. Netizens are also calling in discussion forums: "Even for friends who are very familiar, verification is necessary."

Conclusion:

The exposure of the "DGCX Xin Kang Jia" fraud case once again reveals the enormous dangers of illegal fundraising and financial fraud. In today's world, where emerging concepts like digital currencies and stablecoins are constantly emerging, criminals exploit information asymmetry and the public's speculative psychology to commit fraud. Only by improving financial literacy and carefully verifying authenticity can we protect our hard-earned assets amid the noise of information.