Friends, the cryptocurrency world has exploded again! Just last week, a funding platform called 'HTXunion' suddenly closed its withdrawal channel, customer service went offline, and the community was disbanded, leading to over 300 million yuan evaporating overnight. Tens of thousands of investors woke up to find their accounts emptied, some losing everything, and even lifelong savings invested through high-interest loans disappeared in an instant.

This scam was carried out under the flags of Huobi and Sun Yuchen, claiming to be 'HTX official cooperation', promising daily returns of up to 1.2% (annualized 438%), but it turned out to be a complete Ponzi scheme. Ironically, Huobi's official and Sun Yuchen had already denied any association with this project multiple times.

01 False endorsements, using brands to deceive novices

The Huobi Alliance scam starts with brand theft. Promotional materials are filled with Sun Yuchen's portrait and the Huobi (HTX) logo, falsely claiming 'deep cooperation' with Tron and Huobi, even fabricating a 'recommendation letter' from Sun Yuchen. However, in the official list of ecological partners released by HTX DAO, there is no trace of 'Htxunion' at all. On September 10th, Huobi officially issued a solemn statement: 'We have never cooperated with Htxunion, and this project is a brand theft scam.'

Scammers have also altered Huobi's listing standards, falsely claiming that deposits can lead to listing on the HTX exchange through a 'green channel'. In reality, HTX requires the SunPump project to have a trading volume exceeding $10 million for three consecutive days or a market value of $30 million for it to be listed, which is definitely not guaranteed by deposits.

02 Return traps, crazy promises that violate economic laws

The most enticing aspect of the Huobi Alliance is its outrageous high returns:

  • Static returns: daily rate of 0.4%-1.2%, monthly rate of 18%, annual rate as high as 438%;

  • Dynamic returns: recruit people to earn 10%-30% direct commission + 20% team bonus.

Let's compare:

  • Bank wealth management has an annualized return of about 3%-4%;

  • Huobi's regular wealth management products have a maximum annualized return of only 8%-15%.

    What does an annualized return of 38% mean? This means that the fund pool must double every 4 months to make payouts. Buffett's average annual return is only 20%, and this number makes even the stock god kneel and call him 'ancestor'!

    03 Bloodsucking fees and pyramid schemes

    Once investors deposit money, they will encounter systemic bloodsucking:

    • Transaction fees 30% (Huobi's regular rate is only 0.1%);

    • Withdrawals incur an additional 5%;

    • Want to withdraw profits? You must first deposit $500 to unlock permissions. Directly recruiting one person earns 10%-30%;

    • Team level commission of 20%.

      This fully complies with the definition of 'recruiting pyramid schemes' in the (Notice on Preventing Virtual Currency Risks).

      04 Pig slaughtering strategy: kill the big and release the small, fatten up before slaughtering

      The scammers' operations are highly deceptive:

      • Initially allowing small withdrawals to create a false sense of reliability;

      • Freeze the funds of large accounts, reassuring that 'system upgrade';

      • After retail investors add investments, completely close withdrawals.

      In early September, withdrawals began to be delayed, with the platform dragging on due to 'data anomalies'. On September 14th, the APP was completely unable to log in, and the official website turned into a blank page— the operator has absconded with the funds to Southeast Asia.

05 Rights protection dilemma: hard to chase funds, scammers at large

Victims face threefold dilemmas:

  1. Funds flow to overseas anonymous wallets, making it difficult to track through mixers;

  2. The operator uses a false identity, customer service is outsourced, and real people cannot be found;

  3. Private transfers without contracts, legal rights protection is difficult to prove.

    06 How to avoid the next Huobi Alliance?

    1. Verify official partnerships: any project claiming to cooperate with large platforms should contact official customer service for verification. A phone call can expose the lies (Huobi customer service: +86-400-120-3900).

    2. Beware of high return promises: if the annualized return exceeds 15%, raise questions, and if it exceeds 100%, it is definitely a scam. Financial common sense: there is no high return without risk.

    3. Reject the recruitment model: any earnings linked to developing subordinates should be avoided immediately. True investment relies on knowledge, not connections.

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