Beijing police have opened a criminal investigation into CreditEase, the Chinese wealth management group, over suspected illegal activity at businesses linked to the lender. Founder Tang Ning and other suspects face criminal compulsory measures as investors seek repayment of financial products that stopped accepting redemptions in May.

The probe was announced on October 12 by Beijing’s Chaoyang Public Security Bureau, which said in its press release that the two controllers of the implicated businesses were identified as Tang and Zhao, aged 53 and 51, respectively.

“Beijing police open a criminal investigation into companies affiliated with Chinese wealth management firm CreditEase over suspected illegal financial activities — Bloomberg (@business), October 12, 2026

Bloomberg reported the investigation on October 12.

No specific offenses have been outlined and no formal charges have been filed. The investigation remains ongoing, and the specific compulsory measures taken against each individual have not been disclosed. Under Chinese criminal procedure, compulsory measures range from release on bail and residential surveillance to detention and arrest. Police have also not indicated how many investors are involved, the estimated amount of money lost, or the funds recovered so far.

What the Investigation Covers

Authorities said they are investigating potential illegality at companies related to CreditEase. Founded in 2006, the group began as an online lending platform before branching out into wealth management, loan assistance, and fintech. The Chinese government later imposed stringent regulations on the peer-to-peer lending sector, and by late 2020 regulators reported that no P2P lending platforms remained in operation nationwide. As part of the case, police are seeking to gather evidence from investors and track down related assets.

How Affected Investors Can File Claims

Chaoyang police are accepting complaints online, by mail, and at local stations. Online complaints must be submitted through the WeChat account “Ping An Beijing Chaoyang.” Investors should make sure their filings contain enough information for investigators to identify the relevant transactions and obligations.

For mailed complaints, authorities requested identity proofs, agreements, bank statements, and wire transfer records. Any relevant correspondence may also be submitted. Materials are to be directed to the Beijing unit responsible for investigating crimes.

Investors have been warned not to trust anyone offering faster repayment in exchange for an additional payment. No deadline has been set for the recovery of assets or payments in the case.

Why CreditEase Suspended Repayments

The group halted redemptions of fixed-income-like investment products on May 22. An apology letter reported to have circulated through its Ruicheng and Yirenyou apps on October 11 stated that the group faced immense funding pressure in its lending and wealth management services.

According to CreditEase, the problems were caused by business losses and low-quality assets, and efforts to raise funds through asset sales proved futile. The company said the affected investments were already in default and that available cash was insufficient to service repayment requests.

A preliminary review by third-party financial experts conducted after the freeze found that liabilities might exceed assets. However, the group has not published an independently verified shortfall. Legal experts also remain uncertain about the compliance of some products due to insufficient information.

Yiren Digital’s Connection

Yiren Digital, a New York-listed fintech firm connected with CreditEase, was asked about its ties to the implicated firms. In a previous statement, the company said its management is independent of the wealth management operations. The investigation has revealed no wrongdoing by Yiren.

Yiren’s earnings release published on September 30 showed a net loss of RMB 449.6 million, with second-quarter income of RMB 890 million, a decline of 46% compared with the previous year. Loan facilitation dropped 69% year over year to RMB 6.3 billion.

Its cash and cash equivalents declined from RMB 2.45 billion on March 31 to RMB 1.70 billion on June 30. The quarter also included fair value losses attributable in part to digital asset and investment holdings. These figures reflect the performance of the company’s operations and do not represent asset valuations in the police investigation.

Crypto Investments and the Case

Investment funds linked to CreditEase previously backed fintech and blockchain companies, including Circle, Matrixport, Figure, and Archax. These historical investments do not, however, confirm current ownership or establish whether any holdings are available to repay affected investors. Police have not identified these companies as targets of the investigation, and cryptocurrency dealings have not been connected to the case.

The amount of money that Chinese authorities will return has not been announced. For now, the main task for affected customers is providing records to investigators.

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Source: Tron Weekly