crypto scheme China fraud investigation

Key Points:* Xin Kang Jia reveals fake partnerships, impacts 2M investors with 13 billion RMB fraud.

• 2M investors face losses of 13 billion RMB.
• Lack of clear leadership fuelled the platform’s swift rise and fall. Xin Kang Jia, a financial platform promising improbable daily returns, collapsed in June 2025, affecting 1.8 million Chinese investors. The platform, featuring misleading ties with entities like DGCX and PetroChina, moved vast amounts of USDT, complicating tracking efforts.

Mounting demands for regulations emerge, forcing regulatory bodies to question oversight strategies. DGCX and PetroChina deny involvement, emphasizing investment caution and fraud awareness.

Massive Collapse Exposes 2 Million Investors to USDT Fraud

Xin Kang Jia, founded in 2021, promised astonishing 2% daily returns from futures trading, manipulating trust with false partnerships. Public revelations show no true collaboration with DGCX or PetroChina.

The collapse restricts affected investors, highlighting a loss of 1.8 billion USDT in complex offshore transfers, minimizing cash retrieval chances and leaving investors financially stranded.

Participating in unauthorized activities can lead to financial losses, and DGCX will not be held liable for any losses stemming from involvement with counterfeit applications or false partnerships. – DGCX Spokesperson, Dubai Gold & Commodities Exchange

Xin Kang Jia Fraud Highlights China’s Regulatory Challenges

Did you know? Xin Kang Jia marks one of China’s largest digital asset-related fraud cases, comparable to PlusToken, accentuating the Asian crypto market’s vulnerability to deceptive financial operations.

Tether USDt (USDT) maintains its position with a price of $1.00 and a market cap of 158.59 billion. Its 24-hour trading volume rose to 59.09 billion, witnessing a 57.37% shift. Despite market tendencies, USDT’s price remains relatively stable, as reported by CoinMarketCap.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 13:50 UTC on July 7, 2025. Source: CoinMarketCap Experts from Coincu highlight the regulatory gaps exposed by Xin Kang Jia’s operation. As the platform’s dealings straddle multiple jurisdictions, better global coordination in cross-border crypto transactions is deemed vital to prevent future occurrences.

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