Beijing Police Launch Criminal Probe into P2P Giant CreditEase

The Chaoyang branch of the Beijing Municipal Public Security Bureau issued a notice on October 12 confirming that investigators are probing suspected illegal activities within the group. While police did not disclose formal charges, the use of criminal compulsory measures—which can include detention—signals a severe escalation in the government's response to the company’s liquidity crisis. The investigation centers on Tang Ning and a second individual identified as Zhao, both of whom are listed as actual controllers of the firm.

CreditEase, which once dominated China's online lending market, halted redemptions on fixed-income products in May. In an apology letter circulated on October 11, the company conceded that its assets are likely insufficient to cover its liabilities, effectively confirming a state of default. Investigators have now begun a formal process to collect complaints, directing affected investors to submit documentation via an online portal or by mail to the Chaoyang economic crime unit.

While the group historically invested in international fintech firms including Circle, Matrixport, and Figure, authorities have not linked these specific holdings to the current criminal case. Meanwhile, Yiren Digital—the group's U.S.-listed arm—reported a 46% year-over-year revenue decline in its latest quarterly results. The company maintains that its operations remain independent from the segments currently under investigation.