Investors lose $7.6 bn in Chinese ponzi scam
Nearly 9,00,000 investors in China lost around $7.6 billion in an online ponzi scam involving peer-to-peer lender Ezubao. Chinese authorities arrested 21 people, froze all assets linked to the company and shut down its website. A Ponzi scheme is an investment fraud involving payment of returns to existing investors from funds contributed by new investors, rather than from profits.