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NIFTY23,4060.33%
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Wish Candle Scandal: Chinese Psychic Arrested for Alleged Fraud

Overview In China, a trend of purchasing wish candles with alleged spiritual powers has gained popularity among young people. However, the practice took a turn for the worse when Li Zhuofan, a prominent seller of handmade wish candles and online fortune-telling courses, was arrested for allegedly defrauding her customers.

Background Li Zhuofan gained fame after appearing on the Russian reality show 'The Battle of Psychics', where she claimed to possess psychic abilities. Following her return to China, she began selling handmade wish candles online, adorned with crystals, dried flowers, and essential oils. Each candle was said to possess unique powers, ranging from attracting wealth to improving careers or helping someone get back with a former partner.

Business Model Li Zhuofan's business model involved selling wish candles with prices starting at 2,888 yuan (approximately Rs 38,000) and a premium "triple luck" candle costing up to 7,888 yuan (over Rs 1 lakh). She also offered online fortune-telling courses, teaching customers how to interpret spiritual signs and use them in daily life. Her team produced videos to strengthen her image as a psychic.

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Investigation and Arrest An investigation was launched after a customer reported that a candle meant to attract more customers to their shop failed to deliver results. Li Zhuofan was subsequently arrested on fraud charges, with prosecutors alleging that she earned over 50 million yuan (nearly Rs 66 crore) through sales of the candles and courses. Under Chinese law, fraud involving such a large sum can lead to more than ten years in prison, along with fines and confiscation of property.

Metaphysical Market Trends The wish candle scandal is part of a wider trend in China's metaphysical market, which includes crystals, tarot readings, and other spiritual products. Many young people under pressure from work and studies are drawn to these items, with sellers using live-streaming, social media, and even AI to reach more customers.

Investor Takeaway

Be cautious of online schemes promising unrealistic benefits.

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