Beware of Fake Crypto Trading Platforms! A Complete Breakdown of the 1% Daily Earnings Contract Scam

【Block Beats】Recently, media reports revealed that a domestic financial company disguised as a virtual currency trading platform has been conducting large-scale Ponzi schemes. The company and its platforms such as HSEX claim that investors can follow Bitcoin contract operations, promising a fixed daily profit of 1% (pure static income), with additional dynamic rewards for recruiting others.

Starting with an investment of 7,400 yuan, they exaggerate by claiming that they can earn 370.6% in 30 days, even doubling during the promotional period. Sounds tempting? The problem is—there is no real trading happening at all. The entire platform is just using the money from later investors to pay fake returns to earlier ones, a classic pump-and-dump scheme.

Even more serious, starting from November 27, 2025, this platform suddenly prohibited users from withdrawing funds. Over a week later, they increased the withdrawal fee to 30% under the guise of “wash sale transactions,” and required a 20% “self-certification deposit” before withdrawal. What is this called? Soft exit—on paper, the platform still exists, but in reality, they have already begun the second round of harvesting.

It is worth noting that government departments in Xinyi, Yulin, Hengyang, and other areas in Guangdong, Guangxi, and Hunan have issued risk alerts long ago. The Hong Kong Stock Exchange (HKEX) also clearly stated that this company, along with HSEX, HKEX, and other platforms, has no relation to HKEX and has been repeatedly marked as a suspicious website.

This case reminds everyone: “Fixed daily income + recruitment + high leverage returns” is almost the standard setup for Ponzi schemes. Be very cautious when encountering such platforms.