China's Squid Game: Fraudulent Isolation Challenges

By Ryan Woo, Ethan Wang, and Yukun Zhang

BEIJING (Reuters) – In China's adaptation of Squid Game, fraudsters target the financially distressed amid an economic slump, promising prize money and debt restructuring through dubious schemes.

Unlike the dystopian South Korean series returning for a second season, Chinese participants in isolation challenges don’t risk their lives. However, courts have found that some who pay hundreds of dollars for these challenges are being scammed.

Participants, hoping to win up to 1 million yuan ($140,000), have to follow strict rules, including limited toilet breaks and restrictions on touching alarm clocks. Many cry foul when caught breaking rules due to surveillance.

Recently, a Shandong court ordered an organizer to refund 5,400 yuan ($740) to a player named Sun, deeming the contest's contract as unfair. Sun aimed to win 250,000 yuan while adhering to a strict 30-day isolation rule set.

Additionally, the Cyberspace Administration of China and ByteDance, which owns Douyin, did not provide comments regarding these challenges.

The National Financial Regulatory Administration (NFRA) also warned against fraudsters posing as debt intermediaries, claiming to restructure loans or improve credit profiles for a high fee, which can reach 12% of your loan value. Such services often compromise personal information.

As of November, China's household loans amounted to 82.47 trillion yuan ($11.3 trillion).

($1 = 7.2988 Chinese yuan renminbi)