The collapse of the company Ezubao working in the field of social loans (P2P lending), left without money for about 900 thousand Chinese investors. It is reported that Ezubao was the largest in the history of China a pyramid scheme, operating on the Ponzi scheme, in which dividends old customers are paid not by the actual activities of the company, and by deposits from new customers.
By estimations of economists, in total, investors have lost about 50 billion yuan (8 billion dollars). Police arrested a 21 employee company.
It is also reported that, according to suspicions, the owner of the company DIN nig, used depositors ‘ money for speculation in real estate.