Chinese police investigate CreditEase for alleged illegal activities.

Huoxing Finance reports that on October 12, the Chaoyang Branch of the Beijing Municipal Public Security Bureau issued a police notice stating that it has recently launched a criminal investigation into several companies affiliated with China’s fintech firm CreditEase for suspected illegal activities. The main individuals under investigation, including Tang (male, 53) and Zhao (female, 51), have been subject to compulsory criminal measures. Authorities are fully engaged in the investigation and urge investors to actively cooperate with evidence collection, while warning against scams involving fraudulent claims of “early repayment” or similar schemes. CreditEase is a Chinese fintech company founded by Tang Ning, which previously operated P2P lending products; its subsidiary Yirendai was listed on the New York Stock Exchange. Starting May 22 of this year, CreditEase suspended all payments on its fixed-income-like products and initiated a so-called “orderly wind-down,” affecting approximately RMB 30 billion and nearly 100,000 high-net-worth clients. More than four months after suspending payments, CreditEase recently sent apology letters to clients, acknowledging that the group may be insolvent with a significant debt shortfall. CreditEase has a broad presence in wealth management and investment services. Public information indicates that its funds have directly participated in financing rounds for crypto-related projects such as Circle, Figure, Poko, and Cashmere Wallet, and have acted as limited partners in multiple traditional venture capital funds. CreditEase maintains a legal entity in Singapore—CreditEase Asset Management (Singapore) Pte. Ltd.—which holds a license from the Monetary Authority of Singapore and primarily engages in asset management activities.