Gold illustration.(Chen Bozhou/Dajiyuan)
(November 17, 2024) – Consumers purchasing gold on the MaiDuoDuo platform recently discovered that the platform has stopped delivering goods or issuing refunds. The gold they purchased and their funds may be lost, leading many consumers to file reports with the authorities.
MaiDuoDuo, a "one-stop luxury shopping platform," attracted many buyers by selling gold 20–30 yuan (RMB) cheaper per gram than market prices. Consumers could resell the gold to buyers for a profit, which led to a frenzy of gold purchases on the platform.
According to Henan Broadcast and Television on November 15, Ms. Li from Henan participated in MaiDuoDuo's gold purchasing events at 10 a.m. and 8 p.m. each day. While it was challenging to secure gold, each gram was 20 yuan cheaper, and a 10,000-yuan purchase could yield a profit of 400 yuan upon resale. Ms. Li spent 100,000 yuan on gold through the MaiDuoDuo app. Initially, her orders were fulfilled, but soon, she realized her orders were not being shipped. Customer service also stopped responding.
Pengpai News reported a similar case in November, where Ms. Chen from Changsha, Hunan, purchased 470,000 yuan worth of gold from MaiDuoDuo. However, the platform failed to deliver her order, and by November 7, MaiDuoDuo had stopped responding to all consumer inquiries.
Red Star Capital reported on November 16 that several consumers stated the platform initially delivered gold quickly, but since early November, it has neither shipped goods nor issued refunds. The amounts involved range from tens of thousands to hundreds of thousands of yuan. Some consumers, who took loans to purchase gold, now find themselves unable to repay the loans.
Many consumers who took loans to buy gold on MaiDuoDuo are now struggling with repayments, with some resorting to selling their belongings to pay off debts. Multiple attempts to contact MaiDuoDuo by Red Star Capital went unanswered.
Pengpai News also reported that some consumers who visited MaiDuoDuo's office location found it empty. One consumer stated, "Preliminary estimates suggest over 400 victims, with a total amount exceeding 20 million yuan." Some victims have filed police reports, and Shanghai authorities have officially launched an investigation.
Wu Fenghu, a lawyer at Beijing Jingshi (Shanghai) Law Firm, told Pengpai News that under Article 224 of the Criminal Law, if the platform lacked the ability to fulfill contracts and instead used small or partial contract fulfillments to lure consumers into signing and performing larger contracts, it might constitute contract fraud.
Fu Jian, the director of Henan Zejin Law Firm, explained to Red Star Capital that MaiDuoDuo may have used low-priced gold in the early stages to gain consumer trust. Later, the platform’s sudden refusal to deliver goods or issue refunds aligns with the characteristics of deception to obtain consumer assets for its own benefit. If the platform indeed lacked the ability to fulfill contracts while inducing large-scale purchases, it is highly likely to constitute fraud.
According to Tianyancha, MaiDuoDuo is owned by Shanghai MaiGeGou Network Technology Co., Ltd., established on April 23, 2024, with a registered capital of 15 million yuan and headquarters in Shanghai. Its business scope includes internet sales, clothing and accessory wholesale, shoe and hat retail, jewelry wholesale, cosmetics wholesale, and personal internet live-streaming services. It owns two wholly-owned subsidiaries: Shanghai MaiYouHui Network Co., Ltd. and Shanghai HuTeng Gold & Jewelry Co., Ltd. All three companies are currently active.
Editor: Liu Yi
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