Multiple places warn of the risk of illegal fundraising in virtual currency, exposing the tricks of eight major types of Ponzi schemes.

Recently, the collapse of the "Xin Kang Jia" Ponzi scheme, which claimed to offer a daily return of 2%, has attracted attention and vigilance from society towards new types of online fraud. Regulators have been sounding the alarm intensively. According to incomplete statistics from First Financial, since July, financial regulatory authorities in various regions including Guangdong, Yunnan, Hunan, Liaoning, Heilongjiang, Zhejiang, and Fujian have been issuing warnings about illegal fundraising risks and new types of online fraud under the guise of "virtual currency." First Financial found that although new types of online fraud may seem dazzling, they all share common characteristics. For example, exaggerated advertising and false promises, with common phrases such as "guaranteed profit," "high fixed returns," and "principal repayment with interest"; extraordinarily high returns, claiming daily returns of 1% or even 2%, with annual returns exceeding 300%; and using a "pyramid scheme" mechanism to encourage users to promote a certain project, promising rewards at different levels. These online scams typically bear a common name, known as a "Ponzi scheme." Huang Jinliang, a lawyer from Beijing Yingke (Shenzhen) Law Firm, told reporters that there is a term in legal circles for this called "pyramid-style fundraising fraud," referring to the act of carrying out fundraising fraud through pyramid scheme methods.