Kingdom777 owner Ming Xu failed to publish promised "rules and regulations" and an "approved code of ethics" by the January 31st deadline. Instead, Xu later issued a new directive for affiliates, focusing on terminology changes for the platform.
This directive, citing "frequently misused words," instructs affiliates on the preferred language for Kingdom777. Xu previously blamed affiliate investors for turning his operation into a Ponzi scheme.
Under the new guidelines, "investments" in Kingdom777 must now be called "purchases." This change comes even as Kingdom777 guarantees a weekly return on all such "purchases" made within the company. Individuals making these "purchases" are no longer "investors"; they are now "members."
A "dividend" has become a "bonus." And an "investment return" is also now a "bonus." The "Kingdom Trade Exchange" is simply "Kingdom Trade," despite claims it would be registered with the SEC and permits "points trading."
Perhaps the most unusual redefinition involves "original bonds." These are now described as "objects that can exchange to registered stock after company bonds registered stock after company bonds." The meaning of this phrase remains unclear.
Xu's announcement also detailed the Kingdom Trade stock exchange's role. All company "bonuses" are points, which convert to "777 points" once transferred to Kingdom Trade.
The operational model of Kingdom777 previously involved new affiliate investments funding payouts to existing investors. This cycle, often accompanied by religious references, appeared to be a classic Ponzi structure. The new model maintains this core mechanism. New affiliate "purchases" are still converted into "777 points," with Xu continuing to use new funds to pay existing members.
The platform's new lexicon aims to rename its core operations, but the underlying structure appears unchanged, still offering "objects that can exchange to registered stock after company bonds registered stock after company bonds" as "bonuses."