Hong Kong Police have arrested four individuals linked to a large-scale scam operated under the guise of DGCX XinKangJia. The fraudulent scheme falsely claimed affiliation with the Dubai Gold & Commodities Exchange (DGCX) and lured investors with promises of low-risk digital asset investments offering a daily return of 2%, alongside rewards for recruiting new members.
The scam employed classic pyramid scheme tactics, showing users fake returns on the platform to build trust. However, by late June 2025, investors were unable to withdraw their funds as the app abruptly went offline on June 26.
Authorities confirmed that the platform was entirely fraudulent, with no real investments made. Instead, victim funds were allegedly used to pay earlier investors, a common trait in pyramid schemes.
Blockchain security firm SlowMist reported that the platform moved approximately 1.8 billion USDT to offshore wallets before shutting down. They also noted that the scam operated under multiple business names linked to XinKangJia and launched the DGCX XinKangJia app in May 2024, falsely presenting it as an official Chinese branch of the Dubai Gold & Commodities Exchange.
In April 2025, DGCX issued a statement denying any connection to the app or company, warning the public that the “DGCX App” was unauthorized and not developed by them.
Huang Xin, the founder of XinKangJia, reportedly fled abroad and posted a message mocking the victims, stating: “Hello, comrades! I’m now overseas. Your wealth was not equal to your intelligence, so I corrected the imbalance. Consider this a lesson and be thankful.”
The investigation remains ongoing as police work to hold those responsible accountable.
