Chinese local police arrested 13 people at the small P2P (Peer-to-Peer) lender esudai.com in the city of Huizhou yesterday.
Founded in 2010, esudai.com recorded total transaction value of over RMB7 billion (US$1.07 billion) with 330,000 investors lending out their personal savings via the online portal.
The founders and managers at the company allegedly kept some of those funds for themselves. They are also claimed to have masqueraded as regular users and posted fake borrowing requests.
The news of the online lending scam is nothing extraordinary in a country where a total of 1,598 P2P lenders and fintech operators have failed or disappeared. The majority of those used similar tactics to cheat small lenders before the website owners disappeared with bulky suitcases.
The difference for esudai.com is that the owners were caught be...
This news article comes via , who is the copyright owner of this information and news. FintekAsia.com has licensed the rights to this article and any republication or re-distribution in whole or in part of this content is strictly prohibited without the express consent of China Money Network