Guangdong Jinkeyi Group Collapse: Impact on Cryptocurrency Investments Amid 1.34 Billion Yuan Scandal

On May 3rd, COINOTAG reported on a troubling development from China’s Guangdong Jinkeyi Group, which faced a catastrophic collapse in mid-April, impacting investors by approximately 1.34 billion yuan. The group’s chairman, Lin Chunhao, disclosed in a farewell letter that he had fled to the UK, revealing that the company’s funds had been entirely depleted. Initially, Jinkeyi Group attracted investments through purportedly lucrative financial management seminars, offering annual returns in the range of 6% to 9%. However, investigations have shown that a significant portion of the investments was funneled into P2P lending, stock trading, and notably, cryptocurrency investments, which alone led to losses exceeding 68.98 million yuan. The Shenzhen Public Security Economic Investigation Department has initiated a formal inquiry into these activities.