JYS Group, a Chinese investment firm based in Guangdong province, has collapsed after raising approximately ¥1.34 billion ($180 million) through a series of high-yield schemes, many tied to cryptocurrency and speculative ventures. The company’s chairman, Lin Chunhao, confirmed he fled China and is now in the United Kingdom.

In a message sent via WeChat, Lin claimed he had already reached British soil and revealed he had personally lost over $96 million. He cited failed crypto investments, unpaid promissory notes, and business overheads as reasons behind the financial implosion.

Targeting Retail Investors Through Promises of Safety and Yield

JYS marketed investment products through financial literacy events and community outreach, offering returns of 6%–9% annually with maturities up to 36 months. The firm operated in major cities including Shenzhen, Guangzhou, Foshan, and Zhongshan.

According to local media reports, the products were managed by a related firm, Shenzhen Haiboxin Project Management, which claimed links to state-backed enterprises—claims later found to be false.

Offices Shut, Criminal Investigation Underway

Following the collapse, JYS Group offices in Shenzhen and Zhongshan were found closed, and many staff and sales agents disappeared. Local authorities have launched an investigation, now led by the Economic Crime Investigation Division of the Shenzhen Public Security Bureau.

Investors were initially told their money funded public infrastructure projects. However, Lin’s final statement failed to provide any proof of such investments and instead listed losses from peer-to-peer lending, stock speculation, and crypto trading—each accounting for nearly $10 million in losses.

Red Flags and Broader Warnings

JYS Group’s downfall highlights growing concerns over lightly regulated investment firms using crypto-linked products to lure everyday investors with promises of outsized returns. Many participants increased their exposure under pressure from sales agents, only to find themselves unable to recover funds.

Cross-Border Complications

With Lin now in the UK and no clear extradition agreement in place, recovering funds could be a lengthy and uncertain legal process. Meanwhile, thousands of investors face potential total losses.

FAQs

Q: How did JYS Group avoid regulation?
A: It operated as a “project management” and financial education firm—categories that often fall outside strict regulatory scrutiny in China.

Q: Were the investments real?
A: No verified infrastructure projects were identified. Funds were reportedly lost in speculative markets, including crypto and unregulated lending.

Q: What’s next for investors?
A: Legal action may follow in China, but cross-border asset recovery will be difficult without UK cooperation.