Projects with annualized returns exceeding 360% have collapsed and fled—beware of these 11 projects suspected of pyramid scheme fraud!

Fraudulent wealth management scams. Criminals impersonate the 'Greater Bay Area Office' to develop and distribute fraudulent apps, fabricating high-yield return investment schemes to defraud victims. Even though the official Greater Bay Area portal website issued a warning titled 'Beware of Counterfeit Greater Bay Area Apps'—clarifying that the official portal provides no investment or financial management services—some gullible or uninformed individuals still participate. II. Fraud schemes involving fictitious 'unfreezing of ethnic assets' 1. The fabricated 'Yunji Hui' (Cloud Relief Association) app Criminals impersonate the incarcerated individual 'Zhang Jian', developing and distributing a fraudulent app claiming users can receive benefits upon registration—including 1,000 shares of Maldivian equity, 'electronic treasury bonds', 'Qianyuan Stable Coins', or a 'Yunji Charity Poverty-Alleviation Card' (allegedly holding a balance of RMB 1 million). They also promote high-yield return programs such as 'original equity' and 'people's livelihood fiscal relief funds'. According to user feedback, this app can only be downloaded via third-party links, QR codes, or installation packages; download prompts indicate it is unregistered; payment accounts are held by third-party individuals or companies; and the scheme employs a multi-level marketing (MLM) model to recruit downlines—constituting suspected violations including pyramid schemes, fraud, and illegal collection of personal information. 2. The fabricated 'Inclusive Project' app Criminals impersonate a government department, promoting the app under the guise of 'people's livelihood assistance' or 'elderly care subsidies', fabricating high-yield return programs such as 'education subsidies for nurturing citizens', 'health subsidies for strengthening citizens', and 'elderly care subsidies'. According to user feedback, the app cannot be downloaded from legitimate app stores; download prompts indicate it is unregistered; its privacy policy fails to disclose the scope or purpose of personal information collection; and payments are processed through third-party individuals or companies—raising suspicions of illegal personal data collection and fraud. 3. The fabricated 'Reform Realization Dream' app Criminals falsely claim affiliation with a non-existent 'Economic Reform Administration', developing and distributing a fraudulent app requiring participants to submit personal information and promising benefits—including 'unemployment subsidies', 'childbirth subsidies', and 'education subsidies'—upon real-name registration, constituting suspected illegal collection of personal information. 4. 'Tencent Stablecoin' Criminals impersonate Tencent, falsely claiming the company has launched a 'Tencent Stablecoin', offering 30,000 USDT and a cash red envelope reward of RMB 180,000 upon real-name registration—and 'original shares' for inviting others—constituting suspected illegal collection of personal information and fraud. Recently, amid surging public interest in stablecoins, some criminals have seized the opportunity to spread rumors and stage scams, deliberately confusing the public. They impersonate well-known entities—including China Rare Earth Group, JD.com, and Ant Group—to launch fake 'stablecoin' schemes for fraud. III. Geographically concentrated pyramid schemes 1. The 'Cultural System' 48,000-yuan pyramid scheme operating across Hebei, Shandong, and Anhui provinces Modus operandi: This pyramid scheme operates under names such as 'Cultural System', 'Tiancheng System', 'Tianyue System', and 'Civil Mutual Financial Management'. Internally, it promotes concepts like 'principal-guaranteed payouts', 'public cards', and 'jump cards', touting investments of RMB 48,000 (small-tier), RMB 143,000 (large-tier), or RMB 191,000 (combined tiers), promising payouts yielding returns in the tens of millions of yuan. The organization operates actively across Hebei, Shandong, and Anhui provinces, renting large hotel conference rooms for brainwashing sessions—and frequently rebrands itself to evade detection. 2. The Ningxia 'Human Resources Poverty Alleviation' 33,500-yuan pyramid scheme Modus operandi: This pyramid scheme operates under banners such as 'Western Development Initiative', 'Two-Way Human Resources Poverty Alleviation', and 'National Projects', luring victims to Ningxia under pretexts including online dating, job offers, or tourism—then subjecting them to brainwashing. It promotes an investment of RMB 33,500 for membership, promising payouts of RMB 3–5 million.

A mysterious rising star in the iron ore trading circle has again become embroiled in suspicions of fake bills.

This business model relies on two pillars: ample capital and counterparties capable of absorbing volatility. Where does the capital come from? Invoice financing. Radiant World transfers trade-related accounts receivable—using invoices as proof—to banks and credit funds, thereby accelerating cash flow. According to public reports, much of its financing is backed by trade documents such as invoices and shipping receipts, supported by dozens of banks and credit funds, with total credit lines amounting to hundreds of millions of U.S. dollars. The sole prerequisite for this model’s viability is one thing: authenticity—both of the documents and of the underlying transactions. Once documentation falters, the entire funding chain begins to unravel. 03 Re-examining the Red Flags: Invoices, Contract Numbers, and Non-Existent Transactions This latest crisis erupted over disputed invoices. According to insiders, Vitol and Cargill discovered that the invoices and other documents provided by Radiant World to banks were invalid—and consequently halted all transactions. Glencore, after its traders heard concerns from peers about potentially forged documents, suspended new business, deeming those concerns credible. Further details have gradually emerged. In one instance, Radiant World used an iron ore invoice from its transaction with Vitol to apply for financing from Italy’s Intesa Sanpaolo Bank. When the bank contacted Vitol to verify invoice details, Vitol responded that certain underlying transactions never occurred. Radiant World denies all allegations, asserting that 'the accusations are entirely false and that its trade relationships remain healthy and uninterrupted', and has provided media outlets with recent transaction records involving Vitol, Cargill, and Glencore. However, multiple insiders counter that the contract numbers listed in those records do not match any genuine transactions between those companies. 04 Exposure of Creditors: A €200-Million Provision and a Fund’s Dilemma Creditors moved first. Intesa Sanpaolo Bank announced it had set aside provisions for approximately €200 million in exposure to Radiant World, emphasizing that this would not affect its projected net profit for 2026. The phrase 'provisioned most of the exposure' carries a clear implication: the bank itself judges this money highly unlikely to be recovered. Point Bonita Fund—a vehicle managed by Jefferies—has likewise begun reviewing its exposure. This fund was previously hit hard by the bankruptcy of First Brands Group; recently, its incoming payments have noticeably slowed, with its most recent receipt occurring roughly three weeks ago. Its exposure has declined from a peak to under USD 300 million. After investigation, Jefferies concluded that the underlying transactions themselves are valid—but that certain documents supporting the financing contain discrepancies. The two types of funding differ in form: banks lend against invoices, while the fund holds the accounts receivable directly. Their shared vulnerability lies in limited verification capabilities. The efficiency of invoice financing rests on the assumption that buyers will cooperate in verifying invoices—a premise that does not always hold true. 05 This Is Not the First Time: Banks’ Early Withdrawals Radiant World’s narrowing access to financing began years ago. In early 2020, Rabobank terminated its relationship with Radiant World, reportedly due to internal investigations uncovering the company’s involvement in multiple cases of forged transport documents (bills of lading). Almost simultaneously, ING also ceased providing financing, citing similar concerns. After both banks withdrew, the company’s trading volume and profits stagnated between 2019 and 2021.

Jefferies-linked Fund Claims Radiant World Holds Only $10,000 Cash

4 days ago

A Jefferies-linked fund alleges iron ore trader Radiant World holds only $10,000 in cash despite reporting over $200 million, triggering freezing orders and fraud investigations involving major traders like Glencore and Vitol.

reuters

2026-07-31

Why a Dominant Iron Ore Trader Is Under Scrutiny

2026-08-26

Singapore Police Raid Radiant World Office as Probe Widens

2026-09-17

Jefferies-linked Fund Claims Radiant World Holds Only $10,000 Cash

Jefferies-linked Fund Claims Radiant World Holds Only $10,000 Cash

FAQ