Investors: We Bought 8 Years Ago, Then Got Scammed Out of Our Money! Experts Warn: Be Cautious of "Cloud Raising" Investment Scams

Recently, a well-known investment platform, "Crowd Herding," has been unable to withdraw funds. According to reports, the platform's customer service announced that there is no more money in the account and the police have been involved. On June 18th, reporters from Everyday Economics News visited the office of Crowd Herding's parent company, Crowd Technology (Beijing) Co., Ltd. The office was found to be sealed off with a sign reading "Crowd Fresh" on the door. The entrance to the office was blocked by an iron gate and a security guard. The platform has been promoting the concept of "cloud raising" for several years, claiming that anyone can become a shepherd or farmer by investing in sheep or other livestock. However, behind this seemingly harmless concept lies a complex investment logic. For instance, some platforms claim to offer returns of 597% per year, which is clearly not sustainable. Experts warn that the "cloud raising" concept has been used as a packaging for Ponzi schemes, where investors are promised high returns but actually lose their money. These schemes often use new technologies and terminology to deceive unsuspecting investors. In an interview with Everyday Economics News, Dr. Yuan Shou, a senior partner at Beijing Dacheng Law Firm, noted that the "cloud raising" concept has been used as a packaging for Ponzi schemes. He warned that these schemes often promise high returns and encourage investors to recruit others to invest, which is a classic characteristic of pyramid schemes. Dr. Yuan also suggested that some "cloud raising" platforms may be involved in illegal fundraising activities, where they promise high returns but actually use the funds for their own purposes. He emphasized that investors should be cautious of such schemes and not invest without thoroughly researching the platform's legitimacy.