Madoff in China: Ezubao’s $7.6 Billion Ponzi Scheme

By Clifford Hwang

Beijing has promoted internet finance in the past few years as a way to make affordable credit available to more businesses.  With the explosion in internet financing, the development of regulation has been slow.  Since its founding in 2014, Ezubao defrauded more than 900,000 people out of the equivalent of $7.6 billion.  Ezubao promised investors with returns as high as 15 percent, but nearly all of the investment products were fake.  Some of the most worrying aspects of the scheme was that Ezubao was able to grow this big in China and with what seems like government support, which raises corruption concerns.  Read more about Ezubao here.