Arrogance Causes Outrage: Mastermind of Ponzi Scheme DGCX Xinkangjia Mocks Victims After Fleeing Abroad

The Ponzi scheme known as DGCX Xinkangjia in mainland China collapsed entirely at the end of June, leaving nearly 2 million investors defrauded and causing financial losses exceeding 13 billion yuan.

Huang Xin, one of the founders of DGCX Xinkangjia, fled overseas to evade punishment under the law and arrogantly mocked the victims, claiming he had only taken “wealth that doesn't match the victims’ IQ.”

“Hello comrades! Hello everyone! I am Mr. Huang. I'm out of the country. I believe everyone’s wealth should match their IQ. Since yours doesn't, I’ve simply helped restore the balance. I’m only taking the wealth that doesn’t match your intelligence. You should thank me and be grateful. I hope this lesson stays with you.”

_{Huang Xin, one of the masterminds of DGCX Xinkangjia, taunted the victims in a chat group.}

Founded in 2021, DGCX Xinkangjia attracted investors with “international crude oil spot derivatives”, falsely claiming that the platform was in partnership with the Dubai Gold and Commodities Exchange (DGCX) in the Middle East.

However, the Dubai Multi Commodities Centre (DMCC) alerted Chinese investors on social media platform Xiaohongshu that the DGCX did not have any partnerships or affiliates in China, and that none of the entities or individuals claiming to have a partnership with the DGCX had been officially authorized by the exchange.

_{Xinkangjia rents an office to add credibility.}

Xinkangjia offered participants attractive rewards and gradually created a pyramid-shaped operating structure. The scammers promised participants that they would be paid at least 12,000 USDT for recruiting tens of thousands of people for their team.

A member in Shandong province was given a Porsche after recruiting 1,200 people for Xinkangjia. In March, he disappeared with 20 million yuan, leaving victims with losses.

_{Xinkangjia promises generous returns to its participants.}

The nature of a Ponzi scheme means Xinkangjia's operations relied heavily on continuous inflows from new investors. However, as the scheme expanded, a tipping point became inevitable. When the funds from new participants were no longer sufficient to pay returns to existing investors, DGCX Xinkangjia collapsed.

Numerous victims voiced their grievances on social media, but the scammers had premeditated methods to conceal their funds, making recovery nearly impossible for most investors. They transferred 1.8 billion USDT overseas in batches using the coin mixer ‘Tornado Cash,’ a blockchain technique with a recovery rate of less than 5%.

Chinese police have issued dozens of warnings about the scam. In April, authorities arrested eight key members and froze assets worth 120 million yuan.

BrokersView reminds you

Ponzi schemes attract investors with high returns without actually involving any real trading. Even if investors enjoy a taste of ‘success’ in the initial stage, it's merely bait for ‘bigger fish.’ Once the scammers shut down the platform, victims lose all their money.

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