Mercurity Fintech: This Blatant Scam Run By Repeat Bad Actors Has Skyrocketed 400% On A Ridiculous AI & Fintech Facade
Summary
- Mercurity Fintech Holding Inc. (NASDAQ: MFH) is a $399 million New York-based cryptocurrency miner whose CEO was arrested in China in 2022.
- Led by new CEO Shi Qiu, Mercurity now claims to be expanding into “advanced liquid cooling solutions” for AI data centers while simultaneously driving the “evolution of digital finance” by building a “secure and forward-looking financial ecosystem.”
- With shares hovering around 4-year highs due to these announcements, Mercurity now trades at an absurd 383x EV/Sales multiple.
- The company’s vague but ambitious plans are simply not credible coming from an 11-person company that reported just $1 million in revenue and $4.5 million in losses last year. Even more dubious is that Mercurity’s executives and key shareholders have extensive ties to a billion dollar Ponzi scheme, stock market pump and dumps, and crypto scams.
Questionable Management Track Record
- In 2015, CEO Shi Qiu co-founded Newstyle Capital, which was investigated by the China Securities Regulatory Commission for “illegal and irregular behaviour” and ultimately fined for multiple violations, including advertising guaranteed returns and failing to disclose sufficient information to investors.
- In 2017, working through Newstyle, Shi Qiu formed a joint venture (“JV”) with Mercurity’s now former CSO Ryan Xu to invest in Xu’s “HyperCash” crypto coin. HyperCash was affiliated with Xu’s larger “HyperFund” project.
- HyperCash eventually collapsed by 99% and the SEC has since described HyperFund as a billion dollar “crypto pyramid scheme.” The United States Department of Justice (“DOJ”) charged one of Xu’s partners in HyperFund with “orchestrating a $1.89 billion cryptocurrency fraud scheme.”
- An investigation from The Guardian drew links between HyperFund and Blockchain Global, another of Ryan Xu’s projects that collapsed while reportedly owing creditors $58 million. The Guardian noted that Xu had links to “a series of failed crypto investment schemes.”
- In April 2018, Shi Qiu and Ryan Xu, through a JV, joined a mineral mining company called North Mining Limited, ostensibly to help the conventional miner expand into cryptocurrency mining. The JV was cancelled within 6 months, and North Mining’s annual report makes no mention of revenue being generated from the project.
- After the failed venture with North Mining, in November 2018, Shi Qiu joined Singularity Future Technology (NASDAQ: SGLY), which claimed to be developing a “proprietary bitcoin mining machine.” Shi Qiu was promoted to Chief Technology Officer in 2021, reporting directly to CEO Yang Jie, according to Singularity’s filings
- In May 2022, an investigation from Hindenburg Research revealed that Qiu’s boss, Singularity CEO Yang Jie, was a fugitive from Chinese authorities after running a $300 million Ponzi scheme. The Hindenburg report called Singularity an “obvious total scam”, catalyzing multiple executive departures, and eventually collapsing Singularity’s share price by 98%.
Mercurity’s Connections To Singularity
- 2 days after the release of the Hindenburg report, Mercurity appointed Shi Qiu as its new CEO. A now-deleted presentation reveals, however, that he had been employed by Mercurity since at least December 2021 – meaning he worked at both Singularity and Mercurity simultaneously for at least 1 year.
- The same deleted presentation reveals that Ryan Xu was also employed as Mercurity’s CSO since at least December 2021
- Mercurity also features at least 3 of the same key financial backers as Singularity, including one linked to Mercurity’s largest shareholder, which acquired a 55% stake in 2023 for just $6 million.
- This same shareholder previously invested alongside Mercurity CEO Shi Qiu in Marizyme (OTC:MRZM), a publicly listed company which collapsed by 99%.
- Finally, Mercurity’s audit partner, Chun Keat Su, also audited Singularity and failed to detect that it was a complete scam.
- In summary, Mercurity features the same executive, investors, business partners, and audit partner as the Singularity scam.
Mercurity’s Claimed Expansion Into “Advanced Liquid Cooling”
- In December 2024, Mercurity announced a JV with a “high-tech enterprise” to develop “advanced cooling solutions for AI servers.” It said it would contribute its “capabilities in international marketing and technological innovation” to the JV, along with a $9.8 million investment.
- As with previous announcements, the liquid cooling JV announcement was light on details and did not name the JV partner, but said the partner had a “collaboration” with a “world leading AI server company.”
- Corporate records reveal that the partner is ZJK Industrial, a small manufacturer of nuts and bolts that claims to have an “alliance with NVIDIA.”
- NVIDIA’s publicly-disclosed partner network makes no mention of an alliance with ZJK. Further, NVIDIA’s investor relations department reportedly denied the existence of a partnership with ZJK, according to a recent report on ZJK that called the partnership with NVIDIA a “lie.”
- In March 2025, Mercurity-ZJK’s JV established a subsidiary in China that would “set up a factory … [and] undertake the production and manufacturing functions” of its advanced liquid cooling panels, according to Mercurity's financial statements. We tried to visit the registered address of the subsidiary, but no such address exists.
- The JV with ZJK appears to be Mercurity’s latest desperate attempt to catch the eyes of AI-hungry investors. We think this foray into liquid cooling, like past announcements, is another empty, promotional initiative that will yield zero value for shareholders.
Mercurity’s Purported Financial Services Division
- Mercurity has stated vague goals to shape the “future of finance” and “bridge the gap between traditional and digital financial landscapes for a truly global clientele” through a new US-based subsidiary, Chaince Securities, per multiple press releases.
- In November 2024, Mercurity announced that Chaince Securities had received approval from FINRA to acquire a US-based broker dealer called J.V. Delaney & Associates (“JVDA”) for which they paid $120,000.
- At the time of the announcement, Mercurity claimed it would combine “the strength of J.V. Delaney & Associates’ established broker-dealer platform with Chaince Securities’ solutions.” In reality, JVDA was a dormant company that reported zero revenue in 2024.
- In January 2025, Mercurity named Wilfred Daye as CEO of Chaince Securities. Daye will have a hard time leading Mercurity’s global expansion, as he currently holds executive positions with multiple other companies, to which he dedicates 9 hours per day, according to Daye’s disclosures to FINRA.
- In May 2025, Mercurity announced that Chaince Securities had been appointed as a “strategic digital asset advisor” to a publicly traded online tutoring company called Classover Holdings (NASDAQ: KIDZ), which ostensibly desires to establish a “Solana treasury initiative,” according to a press release issued by the company.
- Classover has all the hallmarks of another pump and dump, reporting minimal revenues, and recently announcing it would sell $400 million worth of shares to a newly created entity which is an undisclosed related party.
Conclusion
- Mercurity is a virtually zero-revenue business with a decade of failed business initiatives that now claims to operate at the forefront of AI hardware, financial technology, and blockchain.
- The company's insiders have numerous ties to crypto scams, stock market pump-and-dumps, and a billion dollar Ponzi scheme. We believe Mercurity will continue to lose money until there is nothing left and it is relegated to the annals of stock market history as yet another pump and dump.
Initial Disclosure: After extensive research, we believe the evidence justifies a short position in shares of Mercurity Fintech Holding Inc (NASDAQ: MFH). Morpheus Research holds short positions in MFH. This report represents our opinion, and we encourage all readers to do their own due diligence. Please see our full disclaimer at the bottom of the report.
Background: A $399 Million Lossmaking Crypto Mining Company Exploring New Verticals After Its CEO And CFO Were Arrested And Its Digital Assets Were Seized
Mercurity Fintech Holding Inc (NASDAQ:MFH) is a New York based fintech with a $399 million market cap that is focused on cryptocurrency mining, AI infrastructure, and financial services.[1]
As of April 15, 2025, Mercurity has 63,686,563 shares outstanding in addition to warrants that can be exercised for an additional 42,755,344 shares at a strike price of $1.00. Based on the closing price of $6.27 on May 7, 2024, its outstanding shares and warrants provide for a fully-diluted market cap of at least $667.4 million. ↩︎
Founded in 2011, Mercurity initially acted as an e-commerce platform until May 2019, when the company ventured into a “blockchain-based technology business”, pivoting its business strategy from e-commerce to fintech.[1]
Mercurity was formerly known as Wowo Limited and JMU Limited. Wowo Limited operated a “third party e-commerce platform” in China, according to the company’s 2014 annual report. JMU Limited, or Join Me Group, was a “B2B procurement platform for the foodservice industry in China” acquired by Wowo in 2015, according to a press release issued by Wowo. ↩︎
In 2021, Mercurity reported its first revenues from its blockchain efforts, with “digital asset mining” driving a grand total of $664,307 in revenue and $12.5 million in total losses.
In February 2022, Chinese authorities arrested Mercurity’s CEO and CFO, seizing $8.2 million in cryptocurrencies, which represented ~82% of the company’s total assets. As of this writing, the company has not recovered any of those funds, prompting it to impair the assets.[1]
As of December 31, 2021, Mercurity had $9.9 million in total assets, consisting primarily of $8.2 million worth of cryptocurrencies — specifically 106.99 bitcoins (worth $5.18 million as of that date) and $3 million USD Coins (“USDC”), according to Mercurity’s financial statements. As of December 31, 2023, Mercurity has impaired the value of the seized cryptocurrencies. The remaining cryptocurrency assets of Mercurity consist solely of Filecoin, which Mercurity valued at ~$3.01 million as of December 2024, according to its financial statements. Since June 2024, the price of Filecoin has decreased by ~53%. ↩︎
In April 2022, Mercurity subsequently disclosed that its CEO and CFO resigned from all positions and confirmed that both former executives were arrested and under criminal investigation.
3 months after the arrests, in May 2022, the company named then 31-year-old Shi “Victor” Qiu as its CEO, who still serves as CEO today.[1]
Bull Case: An Emerging “World Leader In Fintech” And An “AI Infrastructure” Innovator Wrapped Into One Company
In November 2024, Mercurity announced that it had received FINRA approval to acquire a US-based financial advisory firm and FINRA-licensed broker-dealer called J.V. Delaney & Associates (“JVDA”), signaling a partial shift in focus from cryptocurrency mining to financial services in the United States.
In the announcement’s press release, Mercurity CEO Shi Qiu, said:
“This marks a significant milestone in our efforts to bridge the gap between traditional and digital financial landscapes for a truly global clientele.”
Just one month later, in December 2024, Mercurity disclosed another new initiative – its plans to “expand into AI hardware intelligent manufacturing and support liquid cooling solutions for world leading AI servers.”
In February 2025, it announced a joint venture that plans to develop liquid cooling panels to enhance the efficiency of Nvidia GPUs, according to a press release issued by the company.
Those announcements have fueled a meteoric 418% rise in Mercurity’s share price since November 1, 2024, as investors bet on the company’s plans to establish itself as a world leader in fintech solutions and reach the forefront of “thermal management innovation” for AI infrastructure.
Fundamentals: Mercurity Currently Trades At An Absurd Enterprise Value To Sales Multiple Of ~383x
Mercurity’s business pivots have failed to result in meaningful revenue or profits for shareholders. In 2024, Mercurity reported just $1 million in revenue and a $4.5 million net loss.
The company's current enterprise value is ~$383 million, per Bloomberg, indicating Mercurity is currently trading at a 383x enterprise value to sales multiple.
Mercurity currently has 11 employees and has no track record of generating substantial revenue or any profits from its cryptocurrency operations.[1]
Mercurity’s Filecoin operations resulted in a loss of over $600,000 in 2024, and Mercurity states that they may only be profitable with Filecoin prices above $4.54. The price of Filecoin was $2.85 as of May 1, 2025. ↩︎
Its recurring losses have resulted in the company accumulating a deficit of $680 million, according to its 2024 annual report.
Part I: Mercurity’s Leadership Has Ties To A Billion Dollar Ponzi Scheme, Stock Market Pump And Dumps, And Crypto Scams
Mercurity has led shareholders to believe it will soon manufacture advanced cooling solutions for “world leading AI servers,” while simultaneously driving the “evolution of digital finance” by bridging the gap between "traditional and digital financial landscapes.”
While these ambitious plans lack substance, as we will discuss below,, we find them wholly unreliable given that Mercurity’s CEO Shi Qiu, former CSO Ryan Xu, multiple key investors, and the company’s auditor have been associated with billion-dollar pyramid schemes, stock market pump and dumps, and crypto scams.
From 2015 to 2018, Mercurity CEO Shi Qiu, Was The Director, Manager and Legal Representative Of NewStyle Capital
The China Securities Regulatory Commission Issued A Warning And Imposed A Fine On Shi Qiu After Conducting An Investigation On “The Illegal And Irregular Behaviour” Of NewStyle
Mercurity CEO Shi Qiu was the director, manager and legal representative of Newstyle Capital, an entity established in 2015, according to the China Securities Regulatory Commission (“CSRC”).
When Shi Qiu was named board member of Mercurity, the company said that he had “co-founded and served as a Vice President of Newstyle Media Group.” Another professional bio described his role as Vice President of both Newstyle Capital and Newstyle Media.
In August 2022, the CSRC issued an administrative penalty decision after completing an investigation of New Style Capital Investment Management (Inner Mongolia) Co., Ltd.[1]
The investigation was conducted after Newstyle Capital engaged in “illegal and irregular behaviour,” according to CSRC. CSRC accused Newstyle of not registering a fund, not disclosing information to investors, and promising investors that investment principal would not be lost, among other violations.
The Chinese regulator decided to give a warning to Newstyle Capital, Shi Qiu and another individual, and issued a RMB 30,000 fine to each of them.
Mercurity CEO Shi Qiu And Former CSO Ryan Xu Have A Long Track Record Of Joint Involvement In Crypto Scams, Ponzi Schemes, And Pump And Dumps
In 2017, Shi Qiu And Ryan Xu Formed A Joint Venture To Back Xu’s “HyperCash” Crypto Coin, Which Allegedly Featured “Quantum Resistant Signature Technology” And Was A “Pillar” Of Xu’s Larger “HyperTech” Company, Which Also Operated The HyperFund
HyperFund Was Described As A “$1.89 Billion Cryptocurrency Fraud Scheme” By The Department Of Justice
The Price Of HyperCash Has Collapsed By 99%
While Mercurity’s SEC filings do not mention CEO Shi Qiu prior to his 2022 CEO appointment, and no mention of CSO Ryan Xu prior involvement with the company, a now deleted presentation shows that Shi Qiu was the company’s COO as early as December 2021, leading the business alongside then CSO Ryan Xu.
In November 2017, Qiu and Xu reportedly established NewStyle-CollinStar Capital, a joint venture (“JV”) between Qiu’s Newstyle Capital and Xu’s Collinstar Capital.
The JV then backed Xu’s project, the “HCash Foundation”, which developed a cryptocurrency called HyperCash that allegedly featured “quantum resistant signature technology.”
HyperCash, or HCash, was one of 4 companies described as part of a purported conglomerate known as HyperTech Group, according to the SEC. [Pgs. 6, 19]
Ryan Xu was the founder of HyperTech Group, according to an archived version of its website.
In January 2024, the SEC charged the Chairman of HyperTech Group with fraud. The SEC described the case as a “multi-level marketing pyramid and Ponzi scheme that raised over $1.7 billion from victims worldwide.”
Ryan Xu was not charged by the SEC, but his partner, HyperTech Chairman Samuel Lee, was a named defendant in the SEC complaint. The SEC acknowledged in its complaint that HyperTech was “founded by Lee and others.” [Pg. 2]
The DOJ likewise charged Xu’s other partners with operating a “$1.89 billion cryptocurrency fraud scheme.”
The price of HCash has now declined by 99% and it has been delisted from many major crypto exchanges, such as CoinSpot and Binance.
Ryan Xu was also one of three directors of Blockchain Global, an Australian company that collapsed in 2021 amidst scrutiny while owing creditors $58 million, per an investigation by The Guardian. The investigation noted that Xu and his associates had links to a “series of failed crypto investment schemes.”
In April 2018, Business Partners Shi Qiu and Ryan Xu Joined A Mineral Mining Company Called North Mining Limited, Ostensibly To Help The Company Establish A Crypto Division
The JV Was Cancelled 6 Months Later, And North Mining’s Annual Report Makes No Mention Of Revenue Being Generated From The Project
In April 2018, Ryan Xu formed a joint venture with North Mining Limited, a Hong-Kong traded conventional miner of a critical mineral called Molybdenum. The reason for the JV was to help North Mining establish a “blockchain technology” division, led by Xu and his “strong team.”[1]
Ryan Xu is known as Zijing Xu, according to a press release issued by Code Chain New Continent, a company for which he acted as Chief Strategy Officer. ↩︎
Shi Qiu was part of Xu’s team, joining the North Mining team just 2 months later in June 2018, according to his corporate bio. He was also described as North Mining's “CIO” in a speaker list for an August 2018 blockchain conference.
North Mining’s 2018 annual report makes no mention of revenue from the JV, but shows that Xu resigned from the company in October 2018 and that the JV was terminated.
After The Failed North Mining Crypto Venture With Ryan Xu, Shi Qiu Joined Singularity Future Technology, Which Was Allegedly Developing A “Proprietary Bitcoin Mining Machine” – Reporting Directly To Singularity CEO Yang Jie
Ryan Xu Was Photographed With Yang Jie At A Political Convention In December 2017
In May 2022 An Investigation Revealed That Yang Jie Was A Fugitive From Chinese Authorities After Running A $300 Million Ponzi Scheme – Singularity Then Collapsed By 99% After Being Called An “Obvious Total Scam”
After the failed JV with North Mining, Shi Qiu joined a subsidiary of Singularity Future Technology (NASDAQ: SGLY) in November 2018, and was promoted to Chief Technology Officer (“CTO”) of the entire business in November 2021, reporting directly to its then CEO, Yang Jie.
Ryan Xu was also connected to Singularity CEO Yang Jie and was photographed him at a political convention in 2017. [Pg. 9]
Shi Qiu’s CTO appointment coincided with Singularity’s claimed development of a “proprietary bitcoin mining machine,” implying that he would play a major role in the development of this technology.
On May 5, 2022, short seller Hindenburg Research released a report on Singularity, revealing that there was no evidence that the company had developed a proprietary bitcoin mining machine.
The report also showed that Singularity CEO Yang Jie, pictured above, was a fugitive from Chinese authorities because of a $300-million Ponzi scheme he orchestrated in China.[1]
Some principals of Morpheus Research were formerly affiliated with Hindenburg Research. ↩︎
After the Hindenburg report was published, in August 2022 a special committee recommended that Yang Jie should be suspended immediately.
Rather than immediately distance himself from Singularity and its fugitive CEO, Shi Qiu waited until November 2022 — 6 months later — to tender his resignation as CTO of Singularity, a time when he was already acting as the CEO of Mercurity.
Singularity’s stock price has since cratered by 98%.[1]
Singularity’s stock price as of May 4, 2022 was $67.50, per Bloomberg. ↩︎
Mercurity Features The Same C-Level Executive, At Least 3 Major Key Backers And Suppliers, And The Same Audit Partner As Singularity
Mercurity’s Largest Shareholder, Which Acquired 55% Of Outstanding Shares For Just $6 Million 17 Months Ago, Was Previously Affiliated With Singularity
This Same Shareholder Co-Invested Alongside Mercurity CEO Shi Qiu In Maryzyme (Ticker), Which Collapsed By 99%
As mentioned, Shi Qiu and Ryan Xu were first highlighted as Mercurity’s COO and CSO, respectively, in a now-deleted December 2021 presentation, Mercurity has never included Ryan Xu’s involvement in its SEC filings.
Mercurity did not report Shi Qiu’s involvement in its SEC filings until May 7th, 2022— just 2 days after Hindenburg Research published its investigation into Singularity, catalyzing multiple executive departures and the company’s eventual collapse.
In addition to Shi Qiu holding a C-level role at both companies, Singularity and Mercurity also share at least 3 of the same key financial backers.
Hexin Global Limited and Viner Total Investments Fund invested in Singularity in December 2021, the same month that Viner also invested in Mercurity, according to each company’s SEC filings. At the time, Viner reported 14.575% ownership of Mercurity.
11 months later, Hexin also became a Mercurity shareholder through a private placement. As of April 12, 2024, Hexin was Mercurity’s second-largest shareholder, controlling 29.5% of the company’s ordinary shares, according to Mercurity’s financial statements. Hexin has since dumped 75% of its holdings, according to Mercurity’s 2025 financial statements.
A third individual, Sen Gao, was also an investor in both companies, owning 16.33% of Mercurity as of the end of 2022.[1] [Pg. 3]
Sen Gao owns his shares of Mercurity via 2 entities: Huangtong International Co., Ltd and Huang Tong International Co., Limited. He obtained the majority of these shares in 2022 via a $6 million asset purchase agreement for crypto mining infrastructure used for Mercurity’s Filecoin mining operations.
Sen Gao was also involved in the earlier crypto venture of Shi Qiu and Ryan Xu at North Mining Shares Co. Ltd., which we described above. In June 2018, North Mining announced it was acquiring a “digital asset platform” known as Coinoah sold by Coinoah Technology Holdings Company Ltd. Hong Kong records show that Coinoah was founded by Sen Gao. ↩︎
In addition to the same major shareholders, Mercurity utilizes the same audit partner as Singularity, according to PCAOB, Chun Keat Su. [1, 2] He seemingly failed to detect that Singularity, formerly known as Sino-Global, was a complete scam.
Mercurity’s shareholders also have connections between themselves. Mercurity’s largest shareholder, Apollo Multi Asset Growth Fund (“Apollo Multi”) has a connection to Viner Total Investments Fund.
The signatory on an Apollo Multi SEC filing was named as a director of Viner Total Investments Fund, per a 2023 prospectus for Marizyme (OTC:MRZM), a company that had planned to uplist to Nasdaq in 2023. [Pg. 129]
Apollo, acquired its 55% of Mercurity’s outstanding shares in November 2023, in exchange for a $6 million investment.[1]
According to a Securities Purchase Agreement completed on December 7, 2023, Apollo Multi acquired 14,251,781 ordinary shares and warrants to purchase 42,755,244 ordinary shares. As of April 12, 2024, Apollo Multi owned 55% of the outstanding shares, per Mercurity’s 2024 annual report. As of April 15, 2025, Apollo Multi still owns these shares and warrants. ↩︎
At the end of 2023, Apollo Multi acquired 55% of Mercurity’s outstanding shares in exchange for a mere $6 million investment.
Shi Qiu was also the CEO of a significant investor in Marizyme, called Chaince Capital Fund LP, owning 9.9% of the shares in December 2021. [Pgs. 3, 7] Marizyme’s uplisting to Nasdaq has still not happened and the stock has lost 99% of its value in the last 5 years.
Part II: After Failing In The Blockchain Industry, Mercurity’s Latest Attempt To Fool Investors Is A Sham Initiative To Develop “Advanced Cooling” Technology For AI Servers
Despite branding itself as a “world leader in Fintech solutions,” in December 2024, Mercurity announced plans to enter the “AI hardware” industry for liquid cooling — a highly-competitive $13 billion industry in which it has no any expertise.[1]
Before this announcement, in September 2024, Mercurity entered into an agreement to “purchase a batch of Inspur AI servers for the development of AI related new business” for $2 million, according to Mercurity’s 2024 annual report. Mercurity agreed to buy these AI servers, not from Inspur directly, but from Jming International Trade Company Limited, according to its financial statements. Jming was incorporated in January 2024. As of March 20, 2025, Mercurity entered into a termination agreement with Jming and stipulates that Jming will return a $1 million advance payment within 60 days, according to Mercurity's annual report. ↩︎
On December 16, 2024, Mercurity announced that it had signed a term sheet with a “high-tech enterprise” to establish a JV in Hong Kong to expand into “AI hardware intelligent manufacturing and supporting advanced cooling solutions for AI servers.”
The company claimed it would harness its "capabilities in international marketing and technological innovation”, and agreed to transfer $9.8 million to the new JV in China in exchange for a 51% stake.
One would expect that Mercurity’s joint venture partner would have the expertise and know-how to compensate for Mercurity’s lack of “AI hardware” experience. Yet, our research indicates precisely the opposite.
Mercurity: “[Our JV] Plans To Manufacture Advanced Liquid Cooling Panels Specifically Tailored For Artificial Intelligence”
Reality: Mercurity’s JV Partner Is ZJK Industrial, A Small Manufacturer Of Basic Nuts And Bolts, Not “High-Tech” Liquid Cooling Panels
On February 19, 2025, Mercurity announced that it had formed the JV, which it described as a “majority-owned subsidiary in Hong Kong, Aifinity Base Limited” which would manufacture “advanced liquid cooling panels” for AI infrastructure.
Mercurity’s press release failed to name the partner that would ostensibly bring the hardware and manufacturing experience to the JV.
Hong Kong’s corporate records reveal the joint venture partner is ZJK Industrial Co, Ltd, a $272 million company that has traded on NASDAQ since September 30, 2024. [Pgs. 1, 9]
A Mercurity employee confirmed the partnership on LinkedIn, reinforcing that the company is “committed to driving innovation” and “developing advanced liquid cooling solutions” for Nvidia’s products.[1]
Given that many tech companies have spent millions of dollars and several years developing liquid cooling technology, often in collaboration with Nvidia, we expected to find a partner with a similar array of sophisticated products. [1, 2, 3, 4]
Yet ZJK’s main products are “screws, nuts, bolts, turning parts, stamping parts and CNC machining parts,” per the company’s IPO prospectus.
It does not appear that ZJK possesses the credentials, capital, and experience to develop the “high-tech” liquid cooling solutions that Mercurity has touted.
Mercurity Touts ZJK’s “Collaboration” With A “World Leading AI Server Company” And ZJK Claims To Have An “Alliance With Nvidia”
We Found No Mention Of ZJK In Nvidia’s Partner List, And Nvidia Investor Relations Has Reportedly Denied That Such An “Alliance” Exists
When Mercurity announced its foray into AI hardware manufacturing, it claimed that its unnamed joint venture partner had “collaboration with the world leading AI server company, including recent requests to produce samples for liquid cooling projects.”
On December 3rd, 2024, ZJK Industrial announced “a significant advancement in its collaboration with NVIDIA” and that it had “received a request to produce samples for one of NVIDIA’s upcoming liquid cooling manifold projects.”
An alleged “alliance” between ZJK and NVIDIA is odd to us, as the data center cooling market is dominated by multi-billion dollar companies with differentiated and proprietary offerings.
While it is possible that ZJK has supplied samples of a commodity component to NVIDIA, we believe its purported “alliance” with the AI tech giant is a gross exaggeration at best—or at worst an outright sham.[1]
We checked NVIDIA’s partner network and could not find any reference to ZJK. Further, a recent report from White Diamond Research called ZJK’s alleged partnership with Nvidia a “lie”, claiming that NVIDIA’s Investor Relations team had denied the existence of any partnership.
On March 7, 2025, Mercurity-ZJK’s Joint Venture Established A Subsidiary In China That Would “Set Up A Factory … [And] Undertake The Production And Manufacturing Functions” Of Its Advanced Liquid Cooling Panels
We Tried To Visit The Subsidiary’s Registered Address In China — It Did Not Exist
Less than a month after Mercurity’s JV with ZJK was established, on March 7, 2025, Aifinity Base Limited (the JV) established a new subsidiary called Yingke Precision (Shenzhen) Intelligent Manufacturing Technology Co., Ltd, according to Mercurity’s 2025 annual report.
Yingke Precision would “set up a factory … [and] undertake the production and manufacturing functions” of the JV’s “advanced liquid cooling panels specifically tailored for artificial intelligence (AI) infrastructure,” according to Mercurity filings. [1, 2]
Yingke Precision's registered address is in an office building in Shenzhen, according to QCC.[1]
Translation obtained using Google Translate. ↩︎
We visited Yingke Precision’s registered address and found that the office did not exist. The building’s office directory did not even include a ”973S” unit number. We walked along the building’s 9th floor, and the highest unit number we found was 912. None of the units on that floor had references to Yingke Precision, Mercurity, Aifinity, or ZJK.
The JV with ZJK appears to be Mercurity’s latest desperate attempt to align itself in some way with a purported supplier of low-cost, commodity parts to the world’s largest AI-hardware company.
We think Mercurity’s foray into liquid cooling, like past announcements, is another empty, promotional initiative that will yield zero value for shareholders.
Part III: Mercurity Bought A Dormant Broker Dealer And Rented The Credentials Of A Registered Broker To Establish An Investment Bank
Mercurity’s claimed involvement in the development of liquid cooling panels for Nvidia is just one element of its larger strategy to lure in unsuspecting investors. The other portion of its promotional narrative hinges on its vague ambition to shape the “future of finance” through its acquisition of a U.S. broker-dealer and investment advisory firm.
On April 12, 2023, Mercurity incorporated a U.S. subsidiary, Chaince Securities, Inc, to develop “financial advisory services, online and traditional brokerage services independently in the future,” according to the company's interim financial statements for the first half of 2023.
On May 3, 2023, less than a month after its incorporation, Chaince Securities entered into “a Purchase and Sale agreement for the acquisition of all assets and liabilities of J.V. Delaney & Associates, an investment advisory firm and FINRA licensed broker dealer.”
Mercurity CEO: “By Combining The Strength Of J.V. Delaney & Associates’ Established Broker-Dealer Platform With Chaince Securities’ Solutions, We Aim To Provide Our Clients With A Secure And Forward-Looking Financial Ecosystem.”
Reality Check: Mercurity Paid Just $120,000 For J.V. Delaney & Associates, A Dormant Broker Dealer With Less Than $10,000 In Cash And Zero Revenue in 2024, Per Its Financial Statements
Mercurity agreed to buy J.V. Delaney & Associates (“JVDA”) for $120,000, according to the company's interim financial statements for the first half of 2023.
On November 22, 2024, Mercurity announced that Chaince Securities received FINRA approval for the ownership transfer of JVDA. In the press release announcing the approval, CEO Shi Qiu said:
“This is an important step forward in our mission to contribute to the evolution of digital finance while ensuring a seamless integration of traditional financial services. This strategic acquisition reflects our commitment to maintaining compliance and operational excellence. By combining the strength of J.V. Delaney & Associates’ established broker-dealer platform with Chaince Securities’ solutions, we aim to provide our clients with a secure and forward-looking financial ecosystem.”
In contrast to Shi Qiu’s claims of “the strength of [JVDA’s] established broker-dealer platform”, it appears as though JVDA was an idle entity at the time of Mercurity’s acquisition. In 2024, JVDA generated zero revenue.
As of 2023, JVDA had less than $10,000 in capital, according to its financial statements. As of June 2024, it had zero assets under management, according to the company’s ADV form.
In January 2025, Mercurity Named Wilfred Daye As CEO Of Chaince Securities And Chief Strategy Officer Of Mercurity To “Lead The Company’s Efforts In Global Expansion” And “Run A Client-Centric Investment Banking And Capital Formation Practice”
Wilfred Daye Also Acts As CEO Of 2 Subsidiaries Of Another Public Company, Samara Asset Group, In Which He Dedicates 9 Hours Per Day To The Roles, Per His Most Recent FINRA Disclosures
It Is Unclear How Daye Can Fulfill Several Executive Roles Simultaneously
On January 31, 2025, Mercurity announced that it had named Wilfred Daye to a dual role as CEO of Chaince Securities and Chief Strategy Officer (“CSO”) of Mercurity.
The company said that Daye’s role as CSO would focus on leading “the company’s efforts in global expansion and digital asset adoption … [and] to accelerate the firm’s growth initiatives.”
Based on Mercurity’s disclosures, one would expect Daye, a registered broker, to be fully dedicated to executing the duties and responsibilities of leading a “global expansion” and running “a client-centric” investment bank — both time-consuming tasks.
That is not the case. Daye currently has 2 other executive roles at Samara Alpha Group and Sylvanus Technologies, both subsidiaries of Samara Asset Group, a €104.5 million company that trades on the Dusseldorf Stock Exchange in Germany. Daye is a co-founder and CEO of both companies, according to his LinkedIn profile.
It is unclear how Daye can effectively manage executive responsibilities at Mercurity and Samara at the same time. Daye dedicates 210 hours a month, more than half of which occur during trading hours, to Samara Alpha Management and Sylvanus Technologies, according to his 2025 FINRA BrokerCheck report. This means that Daye dedicates more than 9 hours per weekday to Samara entities.
Beyond Daye’s Executive Roles At Samara And Mercurity, He Is Currently Registered With Another Broker-Dealer Called Risevest Financial Securities
In January 2025, An Associated Entity Of Risevest Was Labelled As An “Illegal Operator” By The Securities And Exchange Commission Of Nigeria
Despite acting as CEO of Chaince Securities and CSO of Mercurity, as well as holding 2 executive roles at Samara entities, Daye is also a principal of Risevest Financial Securities Limited, a broker-dealer that he has been involved with since October 2023, according to FINRA’s records.[1]
The broker dealer is owned by Risevest Technologies Limited which is owned by Eke Urum, according to FINRA records. ↩︎
In January 2025, the Securities and Exchange Commission of Nigeria issued 2 alerts against associates of Resivest Financial Securities.
The first notice issued by the Securities and Exchange Commission of Nigeria said that an unregistered Resivest entity was “inviting the public to invest in its various investment schemes.” The second notice named another Risevest entity as an “illegal operator.”[1]
The alerts were issued against Risevest Technologies Limited and Risevest (Victoria Island) Cooperative Multipurpose Society Limited. (1, 2) Risevest rebutted the regulatory alerts through its social media. Risevest Financial Securities Limited BrokerCheck report shows that the company is owned by Eke Eleanya Urum. Eke Urum is the founder & CEO of the entity that issued the response to the Securities and Exchange Commission of Nigeria alerts. ↩︎
It appears that Mercurity is simply renting Wilfred Daye’s credentials to fulfill regulatory requirements associated with its broker-dealer.
On May 1, 2025, Mercurity Said That Chaince Securities Had Been Appointed “As Strategic Digital Asset Advisor” To A Publicly Traded Ed-Tech Company Called Classover Holdings
Classover Holdings Has All The Hallmarks Of A Classic Pump And Dump Scheme, Including Minimal Revenues, Consistent Losses, And A $400 Million Share Deal With An Undisclosed Related Party
On May 1, 2025, Mercurity issued a press release stating that Classover Holdings (NASDAQ: KIDZ) had appointed Chaince Securities as “as strategic digital asset advisor to guide Classover's new Solana-based (SOL) treasury initiative.”
Classover Holdings resulted from a de-SPAC transaction that absorbed an operating entity called Class Over Inc. [Pg. 8] The entity was “an online enrichment program that offers over 20 courses taught by certified instructors,” according to its financial statements.
Classover reported $2.8 million in revenue and losses of $516,528 in the first 9 months of 2024, according to its financial statements. As of April 30, 2025, Classover Holdings had a market cap of $18 million, per Bloomberg.
A day later, on the same day that Mercurity announced its relationship with Classover, the latter issued a press release saying that it had entered into an equity purchase facility agreement with Solana Strategies Holdings LLC for the sale of up to $400 million worth of Classover’s shares. Classover would then use part of the proceeds to purchase the cryptocurrency Solana.
After the announcement, Classover's stock price rallied by 366%, and the company's market cap reached $84.33 million.
The purported purchaser of $400 million worth of Classover Holding’s shares (22x its market cap before the announcement), Solana Strategies Holdings LLC, was incorporated on April 25, 2025 — six days before Classover entered into the equity purchase agreement— according to Delaware corporate records.
The signatory for Solana Strategies Holdings in the agreement with Classover is listed as William R. Samuels. Curiously this same person is listed as the manager of one of Classover Holding’s largest shareholders, Jumpstart NYC LLC, indicating that Solana Strategies Holdings is a related party of Classover.
We see Classover and Mercurity’s announcement as nothing more than an attempt to pump their stock.
Conclusion: Yet Another Chinese Pump And Dump
From watching movies like Wolf of Wall Street and Boiler Room, many people are familiar with the idea of a “pump and dump” scheme. Typically, public companies with almost no revenue or operations will be palmed off on unsuspecting investors through promotional hype about a new product or service, all for the benefit of select insiders.
Mercurity fits this description to a tee: virtually zero revenue and backed and run by known bad actors. The company has tried to spin an illusion through its various promotional announcements that it can be a world leader in fintech and benefit from the megatrend of AI.
In practice, Mercurity has no apparent experience in the manufacturing of high-tech AI hardware and little to show for its claim of being a “world leader in Fintech solutions.”
We believe Mercurity will continue to lose money until there is nothing left and it is relegated to the annals of stock market history.
Disclosure: We are short shares of Mercurity Fintech Holding Inc (NASDAQ: MFH)
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