AFP, Shanghai :
Chinese authorities have urged investors to register their claims against a now shut peer-to-peer (P2P) lender allegedly behind the country’s biggest ever Ponzi scheme, according to a statement, raising hopes of compensation.
The Ministry of Public Security, or police, on Saturday called on investors in the financial products of Ezubao-which allegedly bilked 900,000 people out of 50 billion yuan ($7.6 billion) — to provide their personal information through a newly established online platform.
The ministry would collect the information until May 13, using it to assist in the investigation and as a “reference for return of funds”, according to the statement.
Police shut down the company in December and state media earlier this month paraded some of the 21 arrested executives involved with Ezubao and its parent firm Yucheng, saying their platform was a fraud.
The scandal has highlighted poor regulation in the world’s biggest P2P market but also how Chinese investors fail to recognise financial risk.
Claimants were invited to submit their information electronically given the large number of investors spread over a wide geographical area and involving a massive amount of data, the statement said.
