CRYPTO PROMISES MASKED MOUNTING LOSSES
It's widely known that 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 Chunhao, JYS Group ex-chairman 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.
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.