'DGCX Xinkangjia' Collapses: Over ¥18 Billion Vanishes, 1.8 Million Investors Left Devastated

On June 26, DGCX Xinkangjia abandoned its 1.8 million investors, leaving a loophole of over tens of billions. The scam operating under the name “DGCX” had no connection to the Dubai Gold & Commodities Exchange based in the Middle East.

Falsely claims cooperation with the Dubai Gold & Commodities Exchange

The name “DGCX Xinkangjia” was created by blending characters from the names of its three founders - Huang Xin, Shao Xinkang, and Wang Yanjia - to form the name of their investment company.

On March 1, 2021, they founded "Guizhou Xinkangjia Big Data Limited." However, although the company claimed to have 30 million registered capital, the actual payment was zero. And the firm was included in the list of business anomalies.

In May 2024, the company operated a trading platform under the name “China National Petroleum” and launched a Ponzi scheme involving “high-yield crude oil futures” to lure investors. The trio claimed that the platform had a “strategic partnership” with China National Petroleum Corporation (CNPC).

Four months later, the oil trading platform was migrated to the “DGCX Xinkangjia data” trading platform, whose IP address was located in the United States. The migration process involved “activation charges” for early investors, which enabled the fraudsters to collect their initial profits.

The fraudsters misappropriated the Dubai Gold and Commodities Exchange’s acronym “DGCX,” forged cooperation documents, and presented a falsified Singapore financial license, deceptively claiming a partnership with the exchange.

DGCX, the largest derivatives exchange in the Middle East, is regulated by the Dubai Financial Services Authority (DFSA). Since November last year, the genuine DGCX has repeatedly clarified that no institution has been authorized to use its logo and that it has no collaborative projects with any of these entities.

_{DMCC alerts Chinese investors to unauthorized usage of the DGCX logo}

In May 2025, DGCX Xinkangjia suddenly raised its daily yield from 0.8% to 1.5%, with an annualized interest rate of 547%. At the same time, the platform launched the “recruit for luxury car” campaign, making the members of the scheme frantically tout the “last chance to participate” on social media. Enticed by promises of generous returns, numerous investors mortgaged their properties and exhausted their credit lines to fund investments in the platform.

On Wednesday, June 25, the platform received deposits exceeding 120 million yuan in a single day, with 60% coming from investors residing in small to mid-sized cities across China. However, DGCX Xinkangjia collapsed the next day.

DGCX Xinkangjia's operation is a typical Ponzi fraud. The scammers divided the country into four operational regions and established a military-style hierarchy to run a pyramid scheme, assigning titles modeled after army ranks. To accelerate recruitment, they offered daily commissions of 10%, incentivizing existing investors to bring in new members.

The Ponzi scheme was sustained by continuous inflows of capital from new investors. Once those inflows became insufficient to cover the promised “earnings” of existing participants, the structure inevitably collapsed.

Victims lose substantial funds

A family of six in Yiwu, Zhejiang Province, believed in the promise of “guaranteed income” and invested 6.5 million yuan. When the elderly member of the household suddenly fell ill and required 100,000 yuan for treatment, they found themselves completely penniless.

Driven by the promise of a “team bonus,” a grocery owner persuaded relatives and friends to invest in the scam. Eventually, she lost all her savings and faced isolation from those closest to her.

A member of DGCX Xinkangjia in Shandong Province successfully recruited over 1,200 investors for the platform and once boasted about his Porsche. He disappeared in March, absconding with 20 million yuan, leaving investors empty-handed.

Fraud alarms have long been sounded

In fact, omens have been shown before the collapse of DGCX Xinkangjia. In January, the platform abruptly imposed withdrawal restrictions, requiring applications exceeding 100,000 yuan to undergo a queued review process, while withdrawals under 100,000 yuan required a 10% handling fee. By March, instant withdrawals were suspended, replaced by a deferred settlement scheduled for the following month. In May, investors with low credit scores faced heightened withdrawal thresholds. Ultimately, on May 18, Xinkangjia’s branch in Guizhou was closed.

Last year, Chinese authorities issued at least 12 warnings, which unfortunately failed to wake up all investors.

_{Chinese authorities issued warnings against DGXC Xinkangjia}

On June 26, 2025, DGCX Xinkangjia completely collapsed. An investigation by the authorities revealed that the masterminds behind the scheme had designed elaborate routes to hide the funds.

The scammers used the coin mixer Tornado Cash to transfer $1.8 billion worth of USDT to a shell company in the Cayman Islands. The recovery rate for virtual currencies processed by this blockchain technology is less than 5%, making the vast majority of investor funds unrecoverable.

Dubai police assisted in the investigation and found that the mastermind had a St. Kitts passport and transferred his assets to Canada in advance, greatly increasing the difficulty of the investigation.

Chinese police arrested eight key members in April of this year and froze 120 million yuan of funds. However, compared to the tens of billions of yuan in investor losses, these frozen funds were just a drop in the bucket.

BrokersView reminds you

The so-called “guaranteed high-yield investment scheme” clearly contradicts fundamental principles of financial markets, making it a clear indicator of fraudulent activity.

DGCX Xinkangjia is not the first Ponzi scheme in the financial market, and it will never be the last one. The investor's awareness and ability to recognize a scam is the last line of defense to protect themselves. A clear understanding of financial principles and a cautious approach to investing are critical to staying out of scammers’ reach.

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