BEIJING – The CEO of the internet-based finance platform Qbao.com has been arrested by police in the city of Nanjing, Chinese state media state reported on Friday.
Zhang Xiaolei, who had been under investigation by authorities for alleged fraud, along with 11 other suspects, has been arrested on charges illegally siphoning off public money.
Investigations show that Zhang used Qbao.com, which was founded in 2012, as a platform to receive money given by creditors, who were attracted by interest returns up to 60 percent, police said.
The website had 200 million registered users and billions of yuan in cash flow, according to a previous report, Xinhua reported.
Zhang turn himself in to police on Dec. 26.
The clients of Qbao.com, in return for investing 100,000 yuan (around $15,000), were promised earnings by participating in activities such as watching advertisements online or filling surveys.
The local police have said that they were doing everything possible to recover the money lost by investors.
Earlier this week, the Spanish club Real Sociedad announced that Qbao.com – whose logo had been prominently displayed on the La Liga team’s shirts for the last few seasons – would no longer sponsor the club.
The Chinese company was been the sponsor of another Spanish football club, Rayo Vallecano, which currently plays in the second tier.