In a shocking turn of events, JYS Group, a company that once promised retail investors high returns through flashy schemes, has imploded spectacularly. Based in Guangdong province, this once-flourishing enterprise crumbled in mid-April 2025, leaving behind a trail of confusion and despair.
They raised an astonishing ¥1.34 billion (around $180 million), but what did investors really get? High-return schemes that sounded too good to be true, like P2P lending and crypto trading. Spoiler alert: they were.
The promised annualized returns of 6% to 9% were like candy to enthusiastic retail investors. With maturity periods ranging from 3 to 36 months, it was a pitch-perfect scheme. They even hosted financial literacy seminars to reel in the unsuspecting.
But, guess what? Many of these investments came via family connections. So much for due diligence!
The operations were managed by Shenzhen Haiboxin Project Management Co., Ltd., which claimed affiliations with state-owned firms. Turns out, they shared offices and personnel—classic red flags.
Investors were drawn in by the allure of perceived government backing, only to find themselves caught in a web of deceit. Like moths to a flame, they flocked to the promise of guaranteed returns.
Investors, lured by the illusion of state support, fell victim to a web of deception and false promises.
Then reality hit. Failed investments in crypto trading and P2P lending, coupled with exorbitant operational costs, unraveled the whole façade. The lack of transparency was staggering. Additionally, local authorities have initiated investigations into the company’s operations and its connections with other entities.
Misuse of funds? Check. Hidden losses? Double-check. And don’t forget the global economic uncertainty that made it all worse, as the U.S. economy shifted from a booming state to a recession scare in mere weeks.
And where was Lin Chunhao, the chairman? He fled to the UK faster than you can say “financial failure.” He even had the audacity to claim personal losses of over $96 million.
Now, with offices shut down and a criminal probe underway, investors from cities like Shenzhen and Guangzhou are left holding the bag. The future doesn’t look bright. Legal actions loom, and the fallout? It’s just getting started.
