Chinese Police Investigate CreditEase, Linked to Crypto Projects

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The Beijing Chaoyang District Public Security Bureau has launched a criminal investigation against relevant companies of the Chinese fintech firm CreditEase on suspicion of illegal crimes. Multiple suspects, including actual controllers Tang * (male, 53) and Zhao * (female, 51), have been subjected to criminal compulsory measures. CreditEase, founded by Tang Ning, previously operated P2P products and had its subsidiary Yirendai listed on the New York Stock Exchange. Since May of this year, CreditEase has fully suspended redemptions of its fixed-income-like products and initiated a so-called “benign liquidation,” affecting approximately 30 billion yuan and nearly 100,000 high-net-worth clients. Four months after the redemption suspension, CreditEase recently sent apology letters to clients, admitting that the group may be insolvent with a large debt repayment gap. Public information shows that CreditEase's subsidiaries' funds had directly participated in the financing of crypto-related projects including Circle and Figure. These investigations underscore the ongoing regulatory risks and the need for careful due diligence when investing in companies with ties to the crypto sector, especially in regions with stringent regulations.