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HIIFX's founder has established a new fraudulent website

Reed
Reed
01-18

The news of HIIFX being hit spread as early as 2021, and by the end of 2023, several organizers of DRCFX were arrested.

On December 1, 2023, the Hengyang Municipal Public Security Bureau of Hunan released a detailed case report on the widely watched HIIFX (DRCFX) scam, which introduced how the scam originated and how it rapidly expanded.

While the case appears clear, why does this significant online pyramid scheme continue to cause unrest, and why do some victims still defend the scammers and the platform that defrauded them online?

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HIIFX l has been heavily promoted online since 2019 and 2020. Early on, users began to suspect and even questioned the platform on communities such as the HIIFX Post Bar on Baidu, but as some users stated, many people were aware of the risks but chose to proceed regardless.

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Some rational investors discovered the danger behind the platform and tried to warn others not to get involved, and for those already involved to withdraw their funds and escape as soon as possible. Unfortunately, these warnings did not have much effect, and many people still knowingly took the risk.

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Among those who took the risk, some had previous experience or had heard similar stories and quickly withdrew after trying the platform briefly, while others who had never encountered such schemes genuinely believed they were lucky to receive an unexpected windfall.

It has been proved that platforms like this inevitably collapse, and HIIFX was no exception. In January 2022, public security authorities and relevant departments across China issued warnings about the risks of HIIFX.

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On January 3, 2022, Taiwanese police arrested 12 key suspects involved in the HIIFX DRC scam.

According to Taiwanese police reports, HIIFX promised returns of up to 5% per month by investing in virtual currency tether, with as many as 20,000 members in Taiwan and roughly $30 million USD absorbed by the platform. Following the police investigation, the leaders of the Huihui Group, including Ms. Guo and Ms. Su among 12 individuals, were arrested.

On July 12, 2023, Linquan County Public Security Bureau issued a notice, calling on victims and informants to report and register their cases. On December 1, the Hengyang police formally announced case details, stating that some suspects had been captured and funds had been frozen.

Normally at this point, victims would reflect on their regret and denounce the organizers of the scam, waiting to see if they could recover any losses once the police concluded the case.

But unusually, some victims started to claim that HIIFX was a legitimate company and falsely accused the police.

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As of today, in 2024, a number of victims continue to defend HIIFX, whether brainwashed or intentionally deceptive.

Some sincerely believe that HIIFX was a regular company and the funds they received were legitimate returns. They perceive the police intervention as cutting off their means of livelihood, naturally leading to frustration.

Others who cry foul are pretending to be confused, knowing they were deceived. They are less concerned about whether HIIFX is a scam and more about recovering their investment. If the case goes through the usual legal process, they're unlikely to get their money back, especially those who borrowed to invest. Hence, they can't accept the platform being shut down.

They want the police to release the suspects so that HIIFX might reopen, allowing for the chance of new victims to invest and give them a chance to recover their funds. Thus, they feign ignorance and defend those who scammed them.

This is both ridiculous and tragic, as their greed led them to invest all they had and even take on loans. They believed in the slogan "HIIFX, creating miracles,” hoping it would be a miracle where only profits, not losses, were possible.

HIIFX was simply a scam, and it couldn't create miracles. It's a reminder to everyone to invest through regulated channels to minimize risk.

For investors who have been deceived, it’s crucial to recover losses. After all, they bear the ultimate burden, whether from savings or loans.

The first step in recovering losses is to preserve evidence, including but not limited to chat records on various platforms, records of financial transactions, links to the platform, and IDs of relevant personnel on communication software. It's wise to save information first and filter later, rather than selectively saving and risking regret.

The second step is to quickly report the case to the police or file a complaint through various channels such as phone, in-person, or online websites. Investors should not heed the "no use reporting" rhetoric found online and trust that reporting is the most effective way to potentially recover losses.

The final step is to patiently await the outcome of the police investigation. While the result may not be immediate and could take years, it's important to stay focused and monitor the case's progress after filing a report as there is always hope.

Many investors find this last step difficult, becoming increasingly anxious with the lack of updates, even latching on to so-called "insider information." Instead of seeking justice, they may wrongly target the law enforcement agencies, inadvertently distancing themselves from actual restitution.

To conclude, many are concerned about when they will recover their money. The most effective way to do so is to arrest the mastermind behind the platform, the boss of HIIFX, Tan Kee Lin .

海匯國際老闆陳麒麟

While the recent crackdown on HIIFX arrested many suspects, the key figure, Chen Qilin, continues to evade capture. Chen remains highly visible despite the heat, launching another similar platform to HIIFX called OTFX.

OTFX

OTFX claims to be regulated by the NFA in the US, Fintrac MSB in Canada, and ASIC AR in Australia. However, after investigation, OTFX's NFA registration is marked "non-member," contradicting their claims. The company is suspected of false advertising.

Canada's Fintrac MSB is an anti-money laundering organization and has no relation to OTFX's forex margin trading services. OTFX is not regulated by Fintrac MSB, providing no guarantee for user funds.

OTFX’s alleged ASIC AR certification is issued by MGF CAPITAL PTY LTD. MGF itself does not possess retail forex qualifications, and its main business is selling AR authorizations without conducting any review, having authorized more than 50 scam groups to date.

Overall, they employ false advertising, ineffective regulation, and unlicensed operations to create the illusion of reliability, sufficient to deceive most investors. If they were genuinely regulated by authoritative bodies, it would be a different story, but OTFX clearly is not.

After fabricating regulatory information, the next step is attracting new investors, which is vital for any scam. As long as new money comes in, it is trapped. To retrieve their principal and profits, investors will do anything, even risking more capital and dragging friends and family down with them, ending up drowning in the sea of lies.

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OTFX continues the familiar cycle of enticing new investors by having them invite friends and family, offering them a percentage return based on the account amounts of the new recruits, to be paid out in multiple installments.

Unfortunately, no matter how big it's blown up, a balloon will eventually burst, and the day it does is the day they run off with the investors' money. Withdrawals become increasingly problematic until, due to "technical issues" or "network problems," they are no longer possible. The platform may offer comfort, but ultimately, the investors' funds become unattainable.

To avoid such misfortune, it’s best to stay away from unreliable and illegal platforms, and to immediately report any suspected fraudulent activity to the police and relevant authorities. Don’t let greed guide your decisions.

Investing carries risks, but financial schemes and Ponzi scams aren't investments—they are scams with only one winner: the scammers themselves.

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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