[Yu Zhi Financial Exposed for Using 'Virtual Currency Trading' as a Front for Ponzi Scheme] BlockBeats News, December 14: The Economic Observer reported that Yu Zhi Financial Co., Ltd., based in China, has been using 'virtual currency trading' as a guise to operate a Ponzi scheme. Yu Zhi Financial Co., Ltd. and its affiliated platforms (such as HSEX) claimed that investors could follow Bitcoin contract operations and earn a fixed daily profit of 1% (static income), with additional dynamic rewards for referrals. The minimum investment starts at 7,400 yuan, with cumulative returns over 30 days allegedly reaching as high as 370.6%, and even doubling during annual promotional periods. In reality, there were no actual transactions, and payouts to earlier investors were made using funds from newer investors. From November 27 to December 7, 2025, the platform prohibited defrauded users from withdrawing funds. Starting December 8, it raised withdrawal fees to 30% under the pretext of 'wash trading' and required a 20% 'self-certification deposit' to process withdrawals, resulting in a 'soft exit' and a secondary exploitation of investors. The Joint Office for the Prevention and Crackdown on Illegal Financial Activities in Xinyi City, Guangdong Province; the Leading Group Office for the Prevention and Crackdown on Illegal Financial Activities in Yulin City, Guangxi Zhuang Autonomous Region; and the Financial Affairs Center of Shigu District, Hengyang City, Hunan Province, had all previously issued related risk warnings. The Hong Kong Stock Exchange (HKEX) also disclosed that Yu Zhi Financial and its related platforms, HSEX and HKEX, had been repeatedly listed as suspicious websites and had no affiliation with the Hong Kong Stock Exchange.