A “stablecoin + investment” scheme turned into a massive 13 billion RMB exit scam. Who ended up getting burned?

Xinkangjia collapses, 13 billion RMB gone missing

A massive stablecoin scam has just shaken mainland China. Claiming to be a "Middle East financial giant" and the "China branch of Dubai Gold & Commodity Exchange (DGCX)," Xin Kang Jia was exposed for illegal fundraising, with nearly 2 million members reportedly affected. The alleged fraud involves around RMB 13 billion (approx. $1.8 billion USD / 14.1 billion HKD), and the founder fled overseas at the end of June.

The platform heavily promoted USDT stablecoin investment products promising "high and stable returns," attracting a huge number of investors. Using social media, private groups, and aggressive referral schemes, it quickly spread. When the platform announced "system maintenance" and froze withdrawals, the founder openly admitted to being abroad. Only then did victims across multiple regions come forward, revealing a classic Ponzi scheme and a financial black hole.

Founder responds provocatively: “You don’t deserve this wealth”

Instead of apologizing, the suspected founder posted defiant messages online, saying things like “I only took wealth that didn’t match your IQ.” sparking public outrage. This response has further exposed the scam’s manipulative nature and bad faith from the start.

Regulators issue urgent warnings against stablecoin scams

Following the incident, regulators in Shenzhen and Beijing swiftly issued risk alerts, cautioning the public to beware of illegal fundraising disguised as “stablecoins,” “Web3 investments,” or “digital asset appreciation.” Authorities emphasized that these acts violate criminal laws and lack any legal protection.

Trust crisis intensifies — Compliance vs. Decentralization

This case is likely the largest stablecoin exit scam recorded in China, highlighting significant regulatory gaps and the trust challenges Web3 faces in real-world applications. Stablecoins were designed to bridge fiat and crypto assets, but without transparency and oversight, they can easily become just another façade for fraud.

Before investing, always do your homework: research the platform’s background and regulatory status carefully. Don’t let promises of “high returns” blind your judgment.