In April 2025, the collapse of Guangdong JinYaoShi Holding Group (hereinafter referred to as "JinYaoShi Group") shook the Chinese financial circle. This company, which once attracted countless investors with high-yield financial products, not only turned 1.34 billion yuan into nothing but also exposed the deadly consequences of high-risk operations such as virtual currency investment and P2P lending. Chairman Lin Chunhao admitted in a "farewell letter" that funds had been exhausted and that he had fled to the UK, leaving behind angry investors and a mess. Currently, the Economic Crime Investigation Team of the Futian Branch of the Shenzhen Public Security Bureau has intervened in the investigation, and the JinYaoShi Group's explosion has become one of the most notable scandals in the financial sector in 2025.
Uncovering JinYaoShi: From "State-Owned Enterprise Background" to Fraud Trap
JinYaoShi Group was established in Shenzhen, primarily engaged in investment consulting, and superficially donned the halo of a "state-owned enterprise background," but in reality, it was an illegal fundraising platform operating under the banner of high returns. According to the "Daily Economic News," the company purchased titles such as "Doctor," "CPPCC Member," "University Mentor," and "Chamber of Commerce President" to package its chairman Lin Chunhao as an authoritative figure. Lin Chunhao leveraged these glamorous identities to frequently hold financial seminars, targeting middle-aged and elderly individuals as well as financial novices, promising an annualized return of 6%-9%, which attracted a large number of investors to invest their life savings.
The money-raising tactics of JinYaoShi were remarkably sophisticated. X platform user @BeliaSchoo91221 revealed that the company advertised "0 Yuan Financial Courses" on short video platforms, using "knowledge payment" as an entry point to attract target customers. The course content appeared professional but was actually designed to brainwash investors into purchasing high-yield financial products. These products claimed that funds would be used for stable investments, but in reality, most of the funds were used for high-risk virtual currency trading, P2P lending, stock speculation, and other areas.
As of April 2025, JinYaoShi Group had raised approximately 1.34 billion yuan, involving thousands of investors. However, this massive amount of money did not yield the expected returns and instead evaporated rapidly under Lin Chunhao's reckless operations.
Funding Black Hole: Virtual Currency Loss of 68.98 Million is Just the Tip of the Iceberg
In mid-April 2025, Lin Chunhao published an open letter and a financial data chart in the company's WeChat group, admitting his investment failure and that he had fled to the UK. The financial data disclosed in the letter revealed alarming fund flows for JinYaoShi Group: a loss of 68.98 million yuan in virtual currency investments, with significant losses in P2P lending, stock investments, and bill business, totaling 1.339 billion yuan in exhausted funds.
The massive loss in virtual currency investments became the focus of public opinion. Lin Chunhao stated in the letter that he had come into contact with virtual currency business by "chance" and formed multiple trading teams, but almost all lost money. X user @taofen_boy questioned this, believing that the media deliberately highlighted the virtual currency losses, possibly covering up larger issues in other areas. In fact, the virtual currency losses accounted for only about 5% of the total losses, leaving the whereabouts of the remaining 1.2 billion yuan a mystery. X user @SEFATUBA3 speculated that losses in the A-share market might be the main reason, but Lin Chunhao dared not publicly admit it.
In addition to virtual currency, JinYaoShi's P2P lending business was also fraught with problems. According to the "Economic Observer," the company invested a large amount of funds into high-risk P2P platforms, many of which were bad assets and already insolvent. The operations of stock investments and bill business also lacked transparency, suspected of being used to fill funding gaps or transfer assets. Lawyers analyzed that such large-scale fund misappropriation and false advertising had already constituted illegal fundraising.
Investors Left with Nothing, Police Intervene in Investigation
The collapse of JinYaoShi Group left thousands of investors in despair. Many had invested their life savings, such as pensions and housing funds, and now faced total loss. According to X user @jici6182131, most victims were financial novices with little knowledge, who ignored risk warnings in the face of high-yield temptations. Investors attempted to defend their rights but found that the company was already empty, and Lin Chunhao's escape made the hope of recovering funds even more bleak.
At the end of April 2025, the Economic Crime Investigation Team of the Futian Branch of the Shenzhen Public Security Bureau officially filed a case against JinYaoShi Group. The police initially determined that the company was suspected of illegally absorbing public deposits and fraud. X user @AsiaFinance pointed out that Lin Chunhao's careful packaging and false advertising were core methods of deceiving investors, calling on the public to be vigilant against similar financial scams.
Lessons and Reflections: Why Do Financial Scams Persist?
The explosion of JinYaoShi Group is not an isolated case. In recent years, similar incidents have frequently occurred in the Chinese financial market, from P2P platforms running away to financial products exploding, with high-yield promises often hiding high-risk traps. The JinYaoShi incident exposed several issues: first, regulatory loopholes, with illegal fundraising platforms operating under the guise of legality for a long time; second, insufficient investor education, lacking awareness of the risks of high-yield products; and third, the regulation of emerging fields such as virtual currency still needs improvement.
X user @AsiaFinance stated: "Financial scams have occurred countless times; why are there still so many people willing to be victims? Repeat 100 times: do not casually hand over your money to others for management." Regulatory authorities also need to further strengthen the qualification review of investment companies and the supervision of fund flows to prevent similar incidents from recurring.
This article only represents the author's personal views and does not represent the position and views of this platform. This article is for information sharing only and does not constitute any investment advice to anyone.
Join our community to discuss this event
Official Telegram community: t.me/aicoincn
Chat room: Wealth Group
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
