On September 23, in Yinan County, Linyi, Shandong, parents went to the Migpesen Kindergarten to protest against teachers abusing children. According to the parents, a three-year-old child was recently abused at the kindergarten by teachers who pinched his stomach, pulled his ears, and covered him with a quilt.
On July 28, due to being owed wages for a year, medical staff at Hedong Hospital in Linyi, Shandong (formerly Hedong District Hospital) went on strike collectively.
and is still in Shandong. The funds remain in the company’s accounts but have been frozen by the Linyi government. (This mirrors the Haihui International case: the government initially turned a blind eye—or even publicly endorsed it—only to seize everything once the company had grown large enough.)
The whereabouts of the detained investors remain unknown, and police have refused to disclose any information.
Follow-up on the financial collapse of Shupai Yigou in Linyi, Shandong: On the morning of July 23, the Linyi authorities deployed over a thousand police officers and placed the streets surrounding the company’s headquarters under lockdown.
“Massive Ponzi Scheme Collapse: Over a Thousand Investors Besiege Linyi Shupai Headquarters, Clash with Police”
More than a thousand investors from across China gathered outside the headquarters of Shupai Yigou in Linyi, Shandong, on Monday and Tuesday, demanding the return of their investments. Some stormed the building, vandalized facilities, and clashed violently with police. Several individuals were detained.
Shupai Yigou is a consumer rebate platform that rose rapidly in recent years under the banner of the “digital economy.” It promoted a model of “earn money while spending” and “profit-sharing,” encouraging users to recharge funds to snap up products, and then recruit new participants to earn high rebates. The platform claimed annualized returns of up to 200% and touted backing from the government, asserting that the Luozhuang District government held a 34% stake and was overseeing operations. These “guarantees” helped the company expand swiftly into multiple cities across China, claiming thousands of “digital storefronts” and tens of thousands of merchants, with widespread presence in community promotions, TV shopping, and social media marketing. Many users took out loans or mortgaged property to participate.
However, since July, users have reported that withdrawals were frozen and recharge balances became unrecoverable. The promised “T+5” withdrawal period proved meaningless, with clear signs of a broken capital chain.
On July 21, Shupai Yigou issued a notice stating it was under investigation for suspected pyramid selling. The announcement warned that if illegal activity was confirmed, both service providers and users involved in operations could face criminal charges. Simultaneously, the company unveiled a so-called “transformation plan,” including a partnership with the Qingdao Cultural Property Exchange to launch a new “Wenqitong” platform in a bid to construct a “new digital ecosystem.”
Instead of easing tensions, the announcement was widely interpreted as an attempt to “escape liability.” That same day, a large number of investors forced their way into Shupai’s Luozhuang District headquarters, detaining a company executive and demanding repayment—without success.
On the morning of July 22, the situation escalated further. More investors arrived by car from other provinces, swelling the crowd at the headquarters to over a thousand. Local authorities deployed a large number of police officers to disperse the protesters. Violent clashes broke out as police forcibly entered the building, with demonstrators throwing water bottles and other debris, breaking windows and damaging property. Police responded with pepper spray and made multiple arrests.
That afternoon, some protesters relocated to block a road in front of the headquarters, causing major traffic disruptions. Police intervened again and forcibly dispersed the crowd, detaining several more people in the process.
In addition to the headquarters protest, some investors went to the Linyi municipal and Shandong provincial government offices seeking redress. As of the evening of July 22, many investors remained near the Shupai headquarters, with tensions still running high and the incident continuing to unfold.