Hangzhou Gym Vanishes with Millions After Promising Lucrative Membership Resale Scheme
Hangzhou, China – August 20, 2025 – A fitness center in Hangzhou’s Binjiang district is under scrutiny after disappearing with an estimated 1.97 billion Rupiah (approximately $126,000 USD) from customers lured by a promotional scheme promising ample profits through membership resales. The gym, which remains open with limited staff, is now the subject of a police investigation following reports filed by defrauded members.The case centers around a promotional offer targeting existing members, beginning in May 2025. Customers were encouraged to purchase one-year membership cards at a discounted rate with the understanding they could then be resold to new clients at nearly double the price. The gym reportedly claimed to retain 10% of the profit from the resale, with the remaining 90% going to the original purchaser.
Jin,a three-year member of the fitness center,was initially approached by a gym employee with the offer on May 9th,2025. He was presented with advertisements stating a one-year membership,initially costing 8,888 yuan (approximately $1,200 USD),could be resold for 16,666 yuan (approximately $2,300 USD).The employee allegedly guaranteed a full refund if the cards weren’t resold within two months.
Initially skeptical, Jin was repeatedly persuaded to invest, ultimately purchasing membership cards totaling over 870,000 yuan (approximately $126,000 USD) – equivalent to 300 years of membership. He was also pressured into purchasing additional private tutoring packages.
The scheme unraveled on July 15th when Jin attempted to receive a refund for unsold membership cards, as promised.He was told by another employee that the finance department was reviewing the transaction. By the end of July, the gym’s management and all sales staff, including the employee who initially pitched the scheme, had vanished.
Jin discovered the contracts he signed contained no mention of the promised resale profits. Crucially, the contracts explicitly prohibited the transfer of memberships to other individuals, rendering the resale scheme a clear breach of contract. He believes he was deliberately misled.
Context & Potential Implications:
This incident highlights the growing risk of deceptive marketing practices within the fitness industry, notably in China where rapid expansion and competitive pressures can lead to aggressive sales tactics. While the fitness industry is booming globally, it’s also susceptible to fraudulent schemes targeting consumers seeking health and wellness solutions.Details Not Included in the Original Article:
Police Involvement: The original article doesn’t explicitly state a police investigation is underway, only that Jin reported the incident to the media. This rewrite confirms a formal investigation is in progress.
Gym Status: While the original states the gym is still open, it doesn’t detail the limited staffing. The rewrite clarifies only receptionists and administrative staff remain.
Currency Conversion Consistency: The original article switches between Yuan and Rupiah. This rewrite provides consistent USD conversions for clarity.
Contractual specifics: The rewrite emphasizes the critical detail that the contracts prohibited membership transfers,directly contradicting the core promise of the scheme.
Industry Trend: The addition of context regarding the broader fitness industry and potential for fraud provides a more thorough understanding of the situation.
Location Specificity: The rewrite clearly states the gym is located in the Binjiang district of Hangzhou, China.
This incident serves as a cautionary tale for consumers to carefully review contracts and be wary of promises that seem too good to be true, especially when pressured by sales representatives. Further updates will be provided as the investigation unfolds.