Police freeze $497m, seize property of P2P firm Tuandai

Source:Global Times Published: 2019/4/29 12:05:46

Progress has been made in the illegal financing case of Dongguan-based peer-to-peer (P2P) online lending platform tuandai.com as local police have frozen 3,213 related bank accounts and a total of 3.35 billion yuan ($497 million).

So far, local police have seized 50 real estate properties, 2 plots of land, 2 aircraft, 48 cars and a batch of goods, according to a statement posted on the Weibo account of the Dongguan police late Sunday.

In late March, tuaidai.com went bankrupt and hundreds of individual and institutional investors launched a protest demanding their investments be paid back. 

On April 1, local police announced they had detained 44 executives and mid-level managers of the company who prosecutors say will face criminal charges.

Local police said the P2P platform designed fake financial products and sold them to investors through online and offline channels to illegally absorb public deposits.

The Dongguan police department has sent 31 working groups across the country to pursue the money and seized 1.21 billion yuan that was secretly transferred, according to the statement.

On Friday, the procuratorate of Dongguan approved the arrest of four suspects from tuandai.com for the crime of suspected fund-raising fraud and illegally absorbing public deposits, and another 37 suspects for illegally absorbing public deposits.

The closure of tuandai. com is not a stand-alone case, as a string of online finance lenders went under in previous years, such as Qianbao and Ezubo.

About 1,300 P2P platforms halted operations and were found to have problems in 2018, up 556 from 2017, according to data released by industry website wdzj.com.

Industry insiders said that as an increasing number of online P2P firms were shut down for their inability to pay back investors, industry supervision must be stepped up in order to address accumulating risks.

A record filing system for the sector should be rolled out as fast as possible to regulate the platforms, they noted. 

Posted in: COMPANIES

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