China Arrests 52 Singaporeans Over Alleged Pyramid Scheme

Singapore authorities have confirmed that 52 Singaporean nationals have been detained in China since July 2025 over alleged involvement in a pyramid scheme. This marks the largest number of Singaporeans arrested and held overseas simultaneously. The detainees have been in custody for at least two months, according to multiple sources.

Chinese police require prosecutors' approval to formally arrest a suspect within three days, with an extended 30-day window for cases involving multiple locations or individuals. Prosecutors then have seven days to review the case before a potential court appearance. The process typically takes two to seven months, followed by a further month or more of prosecutorial review before the case reaches court.

The Singapore foreign ministry is actively engaged with Chinese authorities through the embassy in Beijing and the consulate-general in Guangzhou. Consular officers have visited all 52 detainees, and the ministry is in contact with their next of kin. Police have also communicated with their Chinese counterparts to gather more information, as the investigation is ongoing.

Guangxi province, the birthplace of the 1040 Sunshine Project and other similar scams, has been identified as the source of this particular operation. The 1040 Sunshine Project, also known as the Beibu Gulf Development Project and the Nanning Investment Scam, has been traced through Chinese court judgments and accounts of past cases.

Recruits are often lured by friends, relatives, or through false pretenses involving tourism, high-paying jobs, or romantic relationships. They are required to pay an entry fee of 69,800 yuan ($10,300) for shares in a fictitious state-backed venture, with the promise of eventual payouts ranging up to 10.4 million yuan. Participants are told the arrangement is secret and exclusive, and are often confined to rented flats where they are cut off from outside contact and subjected to intense recruitment efforts.

China has been actively targeting pyramid schemes and direct selling scams, investigating over 200,000 cases between 2021 and 2025. In November 2025, the State Administration for Market Regulation announced plans to continue cracking down on such activities. New revisions to public security laws, effective from January 2026, enable police to fine and briefly detain rank-and-file participants who had previously avoided criminal prosecution.

In June 2026, Xi'an police arrested 130 individuals across more than 180 locations for pyramid scheme offenses.