The court in Beijing condemned architect Ezubao online financial fraud for $ 9 billion in life imprisonment and issued an additional 26 prison sentences, marking the closure of one of the biggest plunge plans in modern Chinese history.
The verdict comes at a time when the government has stepped up efforts to crack down on risky and unlawful behaviour in the country’s financial sector, including peer-to-peer industries, which still attract large volumes.
Ding Ning, president of Anhui Yucheng Holdings Group, launched Ezubao 2014, was sentenced to life-long robbery and ordered $ 100 million ($ 15,290,000) for crimes such as illegal money-laundering, illegal possession of weapons and smuggling into precious metals.
Ding Dian, the president’s brother, was also sentenced to life imprisonment, and Zhang Min, President Yucheng, and 24 others were sentenced to three to 15 years in prison, according to a Beijing social media account.
Ezubao, after China’s largest P2P lending platform, doubled last year after it turned out that the Ponzi scheme had 59.8 billion yuan ($ 9.14 billion) for more than 900,000 investors by gathering smart marketing.
When the police imposed an arrest in early 2016, the company could not pay 38 billion yuan
The incident has led to the fall of the market of free online financial services and led to new regulations governing the China P2P industry – where the monthly volume exceeds $ 50 billion, statistics published in the industry portrayal shows P2P001.
After the break-up, Ezubau’s surpluses became a cautious story. Ding lifted a monthly salary of 1 million yuan, and he recognized state television spending of about 1.5 billion yuan.
“We have made money collecting projects,” Ding said after the Xinhua report released last year, and then used project companies to recycle their cash accounts with their companies.
He told Zhangu, president of the group, to buy all of the Louis Vuitton and Hermes stores in China.