Chinese police have launched an investigation into companies related to CreditEase, whose affiliated funds had previously participated in financing crypto projects including Circle and Figure.
BlockBeats news, October 12: The Chaoyang Branch of the Beijing Municipal Public Security Bureau issued a police bulletin stating that it has recently opened a criminal investigation into suspected illegal and criminal activities by companies related to the Chinese fintech company CreditEase in accordance with the law. At present, multiple criminal suspects, including actual controllers Tang (male, 53 years old) and Zhao (female, 51 years old), have been subjected to criminal coercive measures in accordance with the law. Police remind that the case investigation is currently being carried out at full force, and investors are requested to actively cooperate with the investigation and evidence collection, while also being vigilant against criminals using names such as "early redemption" to commit fraud.
CreditEase is a Chinese fintech company founded by Tang Ning. In its early years, it operated P2P products, and its subsidiary Yiren Digital was once listed on the New York Stock Exchange. Starting May 22 of this year, CreditEase fully stopped redemption of its fixed-income-like products and launched a so-called "orderly exit," involving about RMB 30 billion and affecting nearly 100,000 high-net-worth clients. More than four months after halting redemptions, CreditEase recently sent an apology letter to clients, admitting that the group may already be insolvent and facing a relatively large debt repayment shortfall.
CreditEase has a broad layout in wealth management and investment businesses. Public information shows that its affiliated funds have directly participated in financing for crypto-related projects such as Circle, Figure, Poko, and Cashmere Wallet, and have also contributed as an LP to multiple traditional VC funds. CreditEase has an entity in Singapore, CreditEase Asset Management (Singapore) Pte. Ltd., which holds a MAS license and mainly engages in asset management business.
