Phillip Ming Xu's WCM777 Ponzi scheme, facing regulatory actions in Peru, Colombia, Canada, Massachusetts, California, and Alaska, appears to have ceased operations. The silence follows weeks of official pressure on Xu's global investment structure.

Xu initially attempted to deflect scrutiny by installing James Tenorio as a figurehead CEO. The scheme also underwent a rebranding, changing its name from WCM777 to Kingdom777. These efforts did not deter regulators.

When Tenorio disappeared and the pressure mounted, Xu suspended payouts to US investors. He then instructed affiliates to stop using investment-related terms. A second rebrand followed, with Kingdom777 becoming Global-Unity. This strategy also failed to stop the regulatory inquiries.

Rumors circulated that Zhi "Tiger" Liu, Xu's partner, had absconded with approximately $50,000,000 in WCM777 affiliate funds. Offices closed shortly after. Staff and legal counsel were fired. Sources indicate Xu has spent recent weeks negotiating with the Securities and Exchange Commission (SEC), reportedly seeking to avoid criminal charges.

Xu confirmed much of this activity in a series of tweets published this morning. The posts broke two weeks of silence on his Twitter account, a period likely spent in discussions with the SEC. Xu claimed to have "sold" the WCM777 scheme.

The idea that Xu simply sold a Ponzi scheme and walked away raises questions. Regulators do not typically allow such transactions to resolve active investigations. Xu's claim that Tiger Liu "designed" WCM777 also appears convenient, especially since Liu's current whereabouts are unknown. Nobody seems to know if Liu is in Hong Kong or elsewhere.

Xu's past attempts to "legalize" the scheme involved two name changes, neither of which succeeded. It is unclear how a new buyer could achieve legality for an inherently fraudulent structure. A third name change would likely yield the same results.

Multiple sources indicate Xu does not know where Liu fled. This contradicts any notion of a cooperative exit strategy between the two. Liu, often described as working from the shadows, appeared to have convinced Xu to be the public face of the operation. Liu’s quiet departure with an alleged $50 million retirement fund leaves Xu to face the consequences alone.

The WCM777 scheme, a structured Ponzi operation from its inception, now appears to be in its final stages. The SEC is widely expected to file charges against Phillip Ming Xu in the coming months.