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Qbao Founder in the Clink After Rags-to-Riches Promises
When the founder of Qbao turned himself over to police in Nanjing shortly before the New Year’s holiday, it sent shockwaves through China and spotlighted illegal investment schemes on the internet where rags-to-riches promises have outpaced the ability of authorities to shut them down.
Zhang Xiaolei, who dangled tales of returns of up to 80% to potential investors, launched Qbao.com in 2012. A source close to authorities told Caixin that he is accused of illegally raising 70 billion yuan ($11 billion), in what, if proven true, would be the largest online investment fraud in China’s history.
“Qbao investors put all their trust in Zhang. It is like a cult,” said a former executive of Qbao.
Anxiety shook the city of 8 million people of Nanjing, where Qbao was started and most of its business is based.
“Almost every person in Nanjing knows someone who has invested in Qbao,” a source close to the company said.
When the founder of Qbao turned himself over to police in Nanjing shortly before the New Year’s holiday, it sent shockwaves through China and spotlighted illegal investment schemes on the internet where rags-to-riches promises have outpaced the ability of authorities to shut them down.
Zhang Xiaolei, who dangled tales of returns of up to 80% to potential investors, launched Qbao.com in 2012. A source close to authorities told Caixin that he is accused of illegally raising 70 billion yuan ($11 billion), in what, if proven true, would be the largest online investment fraud in China’s history.
“Qbao investors put all their trust in Zhang. It is like a cult,” said a former executive of Qbao.
Anxiety shook the city of 8 million people of Nanjing, where Qbao was started and most of its business is based.
“Almost every person in Nanjing knows someone who has invested in Qbao,” a source close to the company said.
