Beijing’s Chaoyang branch of the Public Security Bureau said on Oct. 12 that it has opened a criminal investigation into companies related to Chinese fintech firm CreditEase on suspicion of illegal and criminal activity. Police said several suspects, including actual controllers Tang, 53, and Zhao, 51, have been placed under criminal compulsory measures. Authorities also urged investors to cooperate with evidence collection and warned against scams using claims such as "early repayment." CreditEase, founded by Tang Ning, previously operated P2P products, and its Yirendai unit once listed on the New York Stock Exchange. From May 22 this year, the firm fully halted redemptions for its quasi-fixed-income products and started what it called an "orderly exit," involving about RMB 30 billion and affecting nearly 100,000 high-net-worth clients. More than four months after the halt, CreditEase recently sent an apology letter to clients, acknowledging that the group may be insolvent and facing a large repayment shortfall. Public information also shows funds under CreditEase had directly participated in financing rounds for crypto-related projects including Circle, Figure, Poko and Cashmere Wallet. The company also has a Singapore entity, CreditEase Asset Management (Singapore) Pte. Ltd., which holds a Monetary Authority of Singapore license for asset management.
Beijing police said on Oct. 12 that they have opened a criminal investigation into companies related to Chinese fintech firm CreditEase over suspected illegal and criminal activity.
According to a police notice issued by the Chaoyang branch of the Beijing Municipal Public Security Bureau, several suspects, including actual controllers Tang, male, 53, and Zhao, female, 51, have been placed under criminal compulsory measures. Police said the case is under active investigation and called on investors to cooperate with evidence collection. They also warned the public against fraud carried out in the name of "early repayment."
Redemptions were halted in May
CreditEase is a Chinese fintech company founded by Tang Ning. It previously operated P2P products, and its Yirendai business was once listed on the New York Stock Exchange.
BlockBeats said that starting on May 22 this year, CreditEase fully stopped redemptions for its quasi-fixed-income products and launched what it described as an "orderly exit." The amount involved was about RMB 30 billion, affecting nearly 100,000 high-net-worth clients. More than four months after the suspension, CreditEase recently sent clients an apology letter, saying the group might be insolvent and facing a large repayment gap.
Funds under CreditEase had exposure to crypto deals
Public information shows that funds under CreditEase had directly participated in financing rounds for crypto-related projects including Circle, Figure, Poko and Cashmere Wallet. The company had also invested as an LP in multiple traditional venture capital funds.
CreditEase also has an entity in Singapore, CreditEase Asset Management (Singapore) Pte. Ltd., which holds a license from the Monetary Authority of Singapore and mainly engages in asset management business.
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