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China Arrests Ezubo Executives in $7.6 Billion P2P Fraud Case

  • Almost 95% of investment projects on Ezubo are fake: Xinhua
  • Draft regulations for P2P lenders introduced in December

Chinese authorities arrested 21 executives of Internet finance platform Ezubo for allegedly defrauding investors of more than 50 billion yuan ($7.6 billion) and possessing weapons illegally, the official Xinhua News Agency reported.

Almost 95 percent of investment projects listed on Ezubo -- which means easy-to-lease -- don’t exist, Xinhua reported, citing the website’s owner Ding Ning, who was among those arrested. The company attracted money from about 900,000 people by offering high interest rates and ran a ponzi scheme to pay off some investors between July 2014 and last December.