Ezubao's $7.6BN Ponzi Scheme

The BBC reports that Chinese authorities have arrested 21 people involved in an online finance scheme which is suspected of defrauding 900,000 investors of about $7.6bn.

The 21 people worked for Ezubao, a peer-to-peer lender widely described in Chinese state media as a Ponzi scheme.

Ezubao is believed to be China's largest such online financing business.

Ezubao promised investors that borrowers on its platform would pay back loans at interest rates between 9 percent and 14.6 percent. However, state media said investigations had found more than 95% of the investment offerings on the site were fake.