Yuzhi Finance is exposed to be disguising a "virtual currency trading" scheme to carry out a Ponzi scheme, with risk alerts issued in multiple regions.

On December 14, , the “Economic Observer” disclosed that China-based Yu Zhi Financial Co., Ltd. was engaging in a scam involving “virtual currency trading” and other false pretenses to operate a Ponzi scheme. “Yu Zhi Financial Co., Ltd.” and its platforms (such as HSEX) claimed that investors following Bitcoin contract operations could earn a fixed 1% daily profit (static income), and recruiting others could yield additional dynamic rewards. The minimum investment was 7,400 yuan, with a claimed total return of up to 370.6% over 30 days, and even doubled during annual promotional periods. There was no real trading involved; funds from later investors were used to pay earlier investors. From November 27 to December 7, 2025, the platform prohibited scam victims from withdrawing funds. Starting December 8, it increased handling fees to 30% under the guise of “wash trading” and required a 20% “self-verification deposit” to enable withdrawals, leading to a “soft run” and a second round of investor exploitation. The Office of the Joint Prevention and Control of Illegal Financial Activities in Xinyi City, Guangdong Province, the Office of the Leading Group for Prevention and Control of Illegal Financial Activities in Yulin City, Guangxi Zhuang Autonomous Region, and the Financial Affairs Center of Shigu District, Hengyang City, Hunan Province, had previously issued risk warnings. The Hong Kong Exchanges and Clearing Limited (HKEX) also disclosed that Yu Zhi Financial and its related platforms HSEX and HKEX have been repeatedly listed as suspicious websites and have no connection with HKEX.