Xinhua: Part of the boom in peer-to-peer platforms — which connect lenders and borrowers — Ezubo had grown quickly pitching high-yielding investments as the economy slowed, according to Market Watch. Police have arrested 21 suspects linked to Ezubo and its parent, Yucheng International Holdings Group Ltd., on charges including illegally soliciting funds from the public and fraud, the Xinhua report said, adding that prosecutors are seeking restitution for 900,000 investors. The charges, reported by the government Xinhua News Agency on Monday, are the first official allegations against Ezubo Ltd., whose implosion last year touched off demonstrations in Beijing and several other cities. The report, which cited Beijing police, said Ezubo and Yucheng had lured investors with promises of high-interest payouts from leasing projects. Ezubo collapse would be one of China largest investment frauds in recent years. It quoted company officials saying 95% of the advertised investment projects were falsified, and calling Ezubo a downright Ponzi scheme.
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