Breaking news: 21 arrested in China in largest ever Ponzi scheme

Today it has been reported within Chinese media that £5.3 billion has been stolen from approximately 900,000 investors by managers at peer-to-peer lending platform Euzbao. Whilst it is very difficult to gauge both the truth and the exact extent of this alleged ponzi scheme due to restrictions on internet access and media reporting in Euzbao’s […]

Today it has been reported within Chinese media that £5.3 billion has been stolen from approximately 900,000 investors by managers at peer-to-peer lending platform Euzbao.

Whilst it is very difficult to gauge both the truth and the exact extent of this alleged ponzi scheme due to restrictions on internet access and media reporting in Euzbao’s home country of China, if this is correct, then it would set a new milestone as China’s largest ever case of investor fraud, both in value and by number of victims.

Chinese government-owned news agency Xinhua has reported that two suspects have already confessed to operating the scheme whilst they were being held in police detention centers.

Zhang Min, the previous president of Yucheng Group which is the parent company of Euzbao has, according to the report, described the business as a “complete Ponzi Scheme.”

Investigations have been in progress by police since December last year, at which time the assets of the company were frozen by Chinese authorities.

The scheme has been orchestrated by 21 suspects, including the high flying Ding Ning, who masterminded it and is a high-flying and wealthy executive.

All of the suspects are collectively accused of luring investors with false offers of very high annual returns running into double digits, ranging between 9 and 14.6%.

Photography in Shanghai, China. Copyright Andrew Saks-McLeod

Read this next

Digital Assets

FTX Japan has until March to return customer assets

The Kanto finance bureau of Japan’s Ministry of Finance (MoF) said it will extend its business suspension order for FTX Japan, the Japanese arm of the beleaguered crypto exchange FTX.com.

Executive Moves

Johan Wiese replaces Richard as director of IG South Africa

IG Group, Europe’s largest online trading platform, has relocated its Finance Chief Operating Officer (COO) Johan Wiese to join its South Africa business as a director.

Digital Assets

Nexo continues European expansion with Polish licence

Crypto lender Nexo said today that it had been registered as a virtual currency operator with the Ministry of Finance in Poland, which enables its European-based entity to provide services to the country’s residents lawfully.

Digital Assets

Wirex expands crypto lineup to 130 tokens

Payment and crypto wallet provider Wirex has listed 52 new tokens on their app, bringing the total number of supported digital assets to 130, alongside 13 fiat currencies.

Executive Moves

Capital.com lures IG’s long-serving exec Greg Adams

Multi-licensed online brokerage group Capital.com has appointed Greg Adams, who spent the bulk of his two-decade career at IG Group, as its newest head of risk.

Digital Assets

Farcana and Dravus join forces to line up sustainable mining power sources

As a result of growing ecological awareness, the sector’s top companies have been working to achieve effective cryptocurrency mining while still being energy-efficient: e.g. using mining facilities fueled by renewable power and located in colder regions to lower heat-dissipation costs.

Retail FX

Vantage to expand swap-free trading offering after savings of $1 million in gold XAUUSD

The swap-free product enhancement was designed to provide greater convenience for gold XAUUSD traders. Clients are not charged overnight fees when trading across all trading accounts, including on the Vantage App, regardless of trade size.

Digital Assets

Bosonic launches Cross Custodian Net Settlement to further eliminate settlement risk

Bosonic has announced the go-live of Cross Custodian Net Settlement (CCNS) in which trades in USDC and ETH were executed, cleared, and settled atomically between two digital asset custodians, First Digital in Hong Kong and Propine in Singapore.

Industry News

IntraFi taps Broadridge to offer loans to costumers of brokers, advisors, and RIAs

“Broadridge’s partnership with IntraFi expands the availability of securities-based lending to previously underserved parts of the market — community and regional banks, independent broker-dealers, and unaffiliated advisors and RIAs.”

<