Chinese authorities actively crack down on pyramid schemes.
One of China’s most notorious pyramid schemes is the 1040 Sunshine Project, a sprawling multi-level marketing scam that became particularly associated with Guangxi, including the cities of Beihai and Nanning.
It lured participants with promises of extraordinarily high returns and operated under a system known as “five levels and three promotions”.
The system refers to the hierarchical structure used by pyramid schemes to organise its members. Levels are determined by the total number of shares purchased by the individuals and the members they recruited.
Members were reported to have been active in Nanning, Wuhan, Hefei and Guiyang from 2007, and variants of the scheme subsequently appeared in numerous parts of China.
Other notable cases have also emerged over the years.
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