Dubai Gold Exchange Name Misused in Suspected Fraud Scheme

The Taohuajiang County Public Security Bureau has issued a risk reminder regarding the "DGCX Xinkangjia" platform, which is suspected of engaging in illegal fundraising and fraud. The platform has been found to use the name of the Dubai Gold and Commodities Exchange (DGCX) to attract funds without proper authorization or qualifications. It falsely claims to be the Chinese branch of the DGCX trading platform and promises high returns to investors. The platform determines levels and profit-sharing ratios based on the number of new members brought in by existing investors, creating a pyramid scheme-like structure.

According to the statement, starting from June 25, 2025, investors on the "DGCX Xinkangjia" platform have been unable to withdraw their principal normally. Additionally, the platform has imposed high "fees" and other restrictive conditions on profits, raising suspicions of illegal activities. The Public Security Bureau warns that such business operations pose significant risks to investors. Once the fund chain collapses, investors are likely to suffer substantial financial losses.

The Public Security Bureau advises the public to be cautious when investing in platforms that promise high returns and to verify the legitimacy and qualifications of such platforms before making any investments. The bureau also encourages anyone with information about the "DGCX Xinkangjia" platform or similar suspicious activities to report it to the authorities.

This incident highlights the importance of due diligence and regulatory oversight in the financial sector. Investors should be wary of platforms that use the names of reputable exchanges without proper authorization and should seek professional advice before making investment decisions. The Public Security Bureau's timely intervention serves as a reminder of the risks associated with unregulated and fraudulent investment schemes.