In just over ten days, a new car worth 140,000 yuan was mortgaged for less than 75,000 yuan, and wanting to redeem it cost over 130,000 yuan—Xiao Zhang's dream of virtual currency investment ultimately turned into a nightmare that plunged the family into financial turmoil.


Xiao Zhang was deceived in his investment in virtual currency, incurring a debt of 70,000 yuan. In desperation, he secretly mortgaged a new car worth over 140,000 yuan that his brother-in-law bought for his father to a financial service company.



He only received 85,000 yuan in mortgage funds, and the actual amount in hand was less than 75,000 yuan. However, just a dozen days later, when he wanted to redeem the vehicle, he was told he needed to pay over 130,000 yuan in release fees.


01 Virtual Currency Investment: A High-Risk Dream


Xiao Zhang's experience is not an isolated case. In recent years, virtual currency investment scams have emerged one after another, and many people have been tempted by promises of "high returns" and ended up losing everything.


The People's Bank of China and other departments have clearly pointed out that virtual currency does not have the same legal status as legal tender, and activities related to virtual currency are illegal financial activities.

A large virtual currency pyramid scheme occurred in Zhengzhou, Henan, where the criminal gang created a false trading market for virtual currency through fake transactions, attracting unspecified members to register accounts and recharge to become members, ultimately developing 2128 members and defrauding over 120 million yuan.

02 Mortgage Trap: Legal Disputes of Financing Lease Contracts


In desperation, Xiao Zhang signed a financing lease contract through his phone, and he later stated: "I didn't even see the contract, I just signed at the bottom."


The staff of the financial service company responded: "The business we conduct is very compliant, please check the nature of the financing lease contract." They accused Xiao Zhang of being "irresponsible to himself."


A financing lease contract is a special financial arrangement that appears to be a "lease," but is actually a method of financing. Xiao Zhang and his brother-in-law analyzed: "It's like buying a car worth nearly 150,000 yuan for 85,000 yuan, and then renting it back; it's quite a scheme."

03 Rights Protection Dilemma: The Reasonableness of High Release Fees


Xiao Zhang's brother-in-law expressed willingness to spend 95,000 yuan to redeem the vehicle, but the financial service company's staff responded that "this number should not work, please communicate again."


This indicates that such financial companies set high early termination fees in contracts, making it a huge cost for customers to redeem their mortgaged items even if they regret it quickly.

04 Legal Risks of Virtual Currency Investment


Chinese law clearly stipulates that virtual currency does not belong to legal tender, and activities related to virtual currency are illegal financial activities.


Participating in virtual currency investment trading activities carries legal risks. Any legal person, non-legal person organization, or natural person investing in virtual currency and related derivatives that violate public order and good customs will have their relevant civil legal acts invalidated, and losses incurred will be borne by themselves.


Even if entrusting others to invest in virtual currency, according to the top ten financial commercial trial cases of Shanghai courts in 2023, contracts for entrusted wealth management with virtual currency as the investment target are also invalid.

05 Preventive Measures: Avoiding Double Traps


In the face of virtual currency investment scams and subsequent mortgage traps, consumers need to enhance their risk prevention awareness, avoid being gullible, not disclose personal information, and report to authorities in a timely manner.


When choosing investment and financial management channels, ensure that investment activities are legal and compliant, and stay away from areas prohibited or unsupported by law. It is important to entrust qualified professional institutions and individuals and strictly review their relevant qualifications.


Xiao Zhang's brother-in-law is willing to spend 95,000 yuan to redeem the vehicle, but the financial service company stated that further communication is needed.


The family financial crisis caused by virtual currency investment is still unresolved. But it warns us: behind high return promises often lies an abyss.


Virtual currency investments are not protected by law, and the subsequent mortgage trap adds insult to injury.