When Cao downloaded the Qiangqiantong app, he actually by no means anticipated it might smash his life. So Cao invested the equal of $11,600 — his complete financial savings — with Qiangqiantong. And why not? The app claimed to supply superb funding alternatives, with excessive returns and little threat. As an alternative, this June, the corporate shut down. Now Cao doesn’t know if he’ll ever see his cash once more. The Washing Submit reviews:

Over the previous decade, tens of millions of buyers sunk their money into 1000’s of corporations like Qiangqiantong (which roughly interprets to Get Wealthy Fast) and others with names like Cash Pig and Qianbao, or Pockets.

The guarantees have been the identical: regular development, massive dividends and an opportunity for buyers to place monetary worries behind. Traders lapped it up. It was as soon as among the many largest small-investor money flood on the earth, with as a lot as $200 billion driving on P2P desires.

Some state-owned banks even helped facilitate funds, and authorities officers spoke of a few of the P2P corporations in glowing phrases.

However since June, a whole bunch of upstart funding corporations have gone bust — many falling sufferer to credit score runs, dangerous bets or the identical Ponzi-scheme unraveling that introduced down fraudsters reminiscent of Bernie Madoff.