JYS Group Crashes After $180M Investment—Chairman Fled to UK
Key Takeaways:
- JYS Group’s chairman, Lin Chunhao, claimed to have fled to the UK and released a farewell message outlining financial failures.
- Investors were recruited through seminars and promised returns as high as 9% on municipal infrastructure-related products.
- Much of the money was lost in areas including P2P lending, crypto trading, stock speculation, and promissory notes.
JYS Group, a Chinese investment firm based in Guangdong province, collapsed in mid-April after raising an estimated ¥1.34 billion (approximately $180 million) for “high-return” schemes, including crypto.
According to a May 2 report by The Economic Observer, the company’s chairman, Lin Chunhao, announced his departure from China via a WeChat group, stating that he had arrived in the UK following failed investments.
Lin’s Escape Sparks Criminal Probe
“By the time you read this, I am already on British soil,” he wrote. Lin claimed personal losses exceeding $96 million and said all funds had been spent on interest payments, salaries, and operating costs.
JYS marketed its offerings by targeting retail investors through financial literacy seminars.
Participants were offered high-yield products with annualized returns of 6% to 9% and maturity periods ranging from three to 36 months. Some were introduced to the schemes through family connections.
The fund was raised from retail investors across several cities, including Shenzhen, Guangzhou, Foshan, and Zhongshan.
The products were managed by Shenzhen Haiboxin Project Management Co., Ltd., which promoted itself as affiliated with state-owned firms.
Investigations later revealed shared offices and personnel with JYS, casting doubt on its claims of independence.
Offices in Shenzhen and Zhongshan were found shuttered, and local authorities have begun investigations. The Shenzhen Public Security Bureau’s Economic Crime Investigation Division is leading the inquiry.
Crypto Promises Masked Mounting Losses
Some investors increased their exposure to JYS Group under pressure from sales agents, with some people committing over $80,000.
The company collapsed within two months of these investments. By the time investors realized the risks, many of the agents who had encouraged their participation could no longer be reached.
While investors were initially told their funds were backing municipal infrastructure projects, such as roads and tunnels, Lin provided no evidence to support these claims in his final statement.
Lin’s farewell message referenced failed ventures but did not mention any specific infrastructure assets in China. Instead, it listed a string of unsuccessful investments across sectors, including peer-to-peer lending, crypto trading, and stock speculation.
According to a financial breakdown shared in the message, losses spanned multiple areas: nearly $10 million each from bad debts, failed crypto trades, and promissory note defaults.
— Cryptonews.com (@cryptonews) April 29, 2025
Beijing has released a multi-agency action plan to integrate blockchain across sectors like AI, finance, and healthcare by 2027.#AI #blockchain #chinahttps://t.co/MRhusQySs3
The collapse of JYS Group points to a broader vulnerability in the investment sector, where financial products like crypto that are marketed as secure and high-yield often operate with little oversight.
Despite repeated warnings from regulators, schemes continue to attract middle-class investors drawn by promises of above-market returns.
Frequently Asked Questions (FAQs):
Quasi-financial entities often operate in grey areas under the guise of “project management” or education services, avoiding immediate scrutiny unless complaints or collapses trigger investigations.
Red flags include high promised returns, pressure from sales agents, and a lack of independent third-party auditing. Regulatory registration alone isn’t sufficient proof of legitimacy.
Cross-border recovery is notoriously difficult. Unless formal extradition treaties and asset recovery channels are in place, investors often face years of legal limbo with little prospect of compensation.
The post JYS Group Crashes After $180M Investment—Chairman Fled to UK appeared first on Cryptonews.
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JYS Group Crashes After $180M Investment—Chairman Fled to UK
Key Takeaways:
- JYS Group’s chairman, Lin Chunhao, claimed to have fled to the UK and released a farewell message outlining financial failures.
- Investors were recruited through seminars and promised returns as high as 9% on municipal infrastructure-related products.
- Much of the money was lost in areas including P2P lending, crypto trading, stock speculation, and promissory notes.
JYS Group, a Chinese investment firm based in Guangdong province, collapsed in mid-April after raising an estimated ¥1.34 billion (approximately $180 million) for “high-return” schemes, including crypto.
According to a May 2 report by The Economic Observer, the company’s chairman, Lin Chunhao, announced his departure from China via a WeChat group, stating that he had arrived in the UK following failed investments.
Lin’s Escape Sparks Criminal Probe
“By the time you read this, I am already on British soil,” he wrote. Lin claimed personal losses exceeding $96 million and said all funds had been spent on interest payments, salaries, and operating costs.
JYS marketed its offerings by targeting retail investors through financial literacy seminars.
Participants were offered high-yield products with annualized returns of 6% to 9% and maturity periods ranging from three to 36 months. Some were introduced to the schemes through family connections.
The fund was raised from retail investors across several cities, including Shenzhen, Guangzhou, Foshan, and Zhongshan.
The products were managed by Shenzhen Haiboxin Project Management Co., Ltd., which promoted itself as affiliated with state-owned firms.
Investigations later revealed shared offices and personnel with JYS, casting doubt on its claims of independence.
Offices in Shenzhen and Zhongshan were found shuttered, and local authorities have begun investigations. The Shenzhen Public Security Bureau’s Economic Crime Investigation Division is leading the inquiry.
Crypto Promises Masked Mounting Losses
Some investors increased their exposure to JYS Group under pressure from sales agents, with some people committing over $80,000.
The company collapsed within two months of these investments. By the time investors realized the risks, many of the agents who had encouraged their participation could no longer be reached.
While investors were initially told their funds were backing municipal infrastructure projects, such as roads and tunnels, Lin provided no evidence to support these claims in his final statement.
Lin’s farewell message referenced failed ventures but did not mention any specific infrastructure assets in China. Instead, it listed a string of unsuccessful investments across sectors, including peer-to-peer lending, crypto trading, and stock speculation.
According to a financial breakdown shared in the message, losses spanned multiple areas: nearly $10 million each from bad debts, failed crypto trades, and promissory note defaults.
— Cryptonews.com (@cryptonews) April 29, 2025
The collapse of JYS Group points to a broader vulnerability in the investment sector, where financial products like crypto that are marketed as secure and high-yield often operate with little oversight.
Despite repeated warnings from regulators, schemes continue to attract middle-class investors drawn by promises of above-market returns.
Frequently Asked Questions (FAQs):
Quasi-financial entities often operate in grey areas under the guise of “project management” or education services, avoiding immediate scrutiny unless complaints or collapses trigger investigations.
Red flags include high promised returns, pressure from sales agents, and a lack of independent third-party auditing. Regulatory registration alone isn’t sufficient proof of legitimacy.
Cross-border recovery is notoriously difficult. Unless formal extradition treaties and asset recovery channels are in place, investors often face years of legal limbo with little prospect of compensation.
The post JYS Group Crashes After $180M Investment—Chairman Fled to UK appeared first on Cryptonews.
Read More
Crypto Space Lost $92M to Hacks in April 2025, Total Loss YTD Hits Whopping $1.74B