👀 China 🇨🇳: criminal proceedings launched against one of Circle's investors, P2P lending giant CreditEase

👀 China 🇨🇳: criminal proceedings launched against one of Circle's investors, P2P lending giant CreditEase

Restrictive measures have already been imposed on several individuals, including the beneficial owners of the business.

➡️ Who is who❓ — in addition to lending, CreditEase and its affiliated funds invested in crypto companies and other fintech businesses. To put this into perspective, the group's investment portfolio includes companies such as Circle and Matrixport… even though cryptocurrency trading is prohibited in mainland China.

➡️ The situation gets worse: the group acknowledged defaults on its financial products and possible insolvency. For example, payments on fixed-return investment products were completely suspended on May 22. Independent financial experts have preliminarily determined that CreditEase's liabilities may exceed its assets and that it faces a substantial shortfall in funds needed to repay clients.

➡️ Who was affected❓ — Yiren Digital, part of the holding group, is a well-known Chinese fintech company specializing in consumer lending, investments, insurance brokerage, and e-commerce. One of its key features is the extensive use of artificial intelligence and big data analytics.

👉 The company's shares trade on the New York Stock Exchange under the ticker YRD. On May 22, they fell 14.44% to USD 1.60, and on June 30, they dropped a further 24% to USD 0.84. Since then, the shares have remained near USD 1.

👉 In the second quarter of 2026, Yiren Digital's net revenue fell 46% to 890 million yuan, while the volume of loans facilitated by the company declined 69% to 6.3 billion yuan.

➡️ Worth noting: cryptocurrency in China remains largely illegal. Some restrictions also apply to stablecoins. For example, stablecoins pegged to the yuan cannot be issued overseas without special authorization.

#news #Asia #China #crypto #P2P

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