Chinese Authorities Crack Down on CreditEase for Crypto-Related Crimes Beijing police have launched an investigation into CreditEase and associated firms, escalating a liquidity crisis into a full probe. The action follows the suspension of $4.50 billion in redemptions and reveals a pattern of fraud across multiple P2P platforms in China. Chinese authorities in Beijing's Chaoyang district have accelerated their quest against criminal activities in crypto. They are in the news today after opening a probe into CreditEase and companies linked to it. CreditEase is a Chinese peer-to-peer (P2P) lending giant. The authorities have now escalated the crisis from a liquidity freeze into a full investigation. The move comes on the back of the firm halting redemptions on fixed-income-like products worth $4.50 billion in May, arguing risk of insolvency. The firm's apology followed on 11th October, a day before the police issued a notice.Founder Tang Ning Taken Into CustodyThe authorities have taken Founder Tang Ning into custody, while his wife, Zhao Mei, and others remain under compulsory measures. Over 100K big investors defaulted as the firm shifted to a loan facilitation model to comply with ​tighter regulations. CreditEase and these other firms previously either invested in or backed companies like Circle , Matrixport, Figure, Archax, and Poko, among other related fintech and crypto plays.However, there is no publicly available evidence to show investor funds were channeled into digital assets. Now, while it is the latest high-profile example of Beijing's multi-year cleanup of China's P2P-to-wealth-management pipeline, it is not the only one. Zhongzhi Enterprise Group, for instance, collapsed a while back and authorities ordered its liquidation with 300 other related entities in April 2026. That case was similar to that of CreditEase.Broader Cleanup Of P2P Lending PlatformsMoreover, Yingkou police opened investigations into Juzi Digital Technology in June 2026. Borrowers repaid the loans through the application, but the platform held the capital instead of directing it into funding banks. Further digging showed Guo Henghua, Founder of Anhui Huaheng Biotechnology, was arrested and charged with illegal collection of public deposits. The Founder of the biotech firm, which was valued at $670 million, caused investors to lose $36 million., after Qian Zhimin was sentenced in 2025. The scheme, Lantian Ge Rui P2P, raised billions of yuan, and the funds were converted intoAfter authorities forced pure P2P platforms to be offline, the pipeline never closed but mutated. Other revelations include that P2P platforms remain insufficiently supervised and high-net-worth clients remain exposed. Orderly wind-downs frequently fail because most of these platforms promise resolutions that turn out to be unworkable.