JYS Group, a Chinese company based in Guangdong, collapsed in mid-April 2025.
The company had raised about ¥1.34 billion, or roughly $180 million, from many investors.
JYS focused on high-risk schemes like crypto, P2P lending, stock trading, and promissory notes.
The company also promoted products linked to municipal infrastructure projects.
Many investors believed they could earn high returns from these investments.
The company promised annualized returns between 6% and 9%.
These investments had maturity periods from three to 36 months.
JYS used funds to pay interest, salaries, and operating costs.
The company’s marketing included seminars to teach about finance.
Many investors were recruited through these events.
Some investors were introduced through family ties, adding a personal touch to the scheme.
The company claimed to have connections with state-owned firms, especially through a partner called Shenzhen Haiboxin Project Management.
However, doubts grew about whether this affiliate was truly independent.
When JYS collapsed, many retail investors suffered heavy losses.
Offices in Shenzhen and Zhongshan were found closed, and investigations began.
The Shenzhen Public Security Bureau launched a criminal probe into the company.
The collapse caused widespread concern across multiple Chinese cities, including Shenzhen and Guangzhou.
Many investors did not get back the money they had put in and lost their expected high returns.
Some investors faced emotional distress and financial hardship.
The company’s chairman, Lin Chunhao, also known as Lin Shuanhao, claimed to have fled to the UK after the collapse.
He issued a farewell message, saying he lost more than $96 million personally.
His escape triggered a criminal investigation.
Authorities suspect that JYS and Haiboxin shared personnel and offices, raising questions about their independence.
The Shenzhen police are working to recover funds and protect investors.
The legal authorities are considering charges against those involved.
The situation has put a spotlight on the risks of high-yield, high-risk investments, particularly in light of the need to evaluate cryptocurrency projects before investing.
Many affected families are now seeking answers as the government steps in to investigate and try to recover some of the lost money.
The collapse is a reminder of how risky some investment schemes can be, especially when promises seem too good to be true.
