Some state-owned banks even helped facilitate payments, and government officials spoke of some of the P2P companies in glowing terms. But since June, hundreds of upstart investment companies have gone bust — many falling victim to credit runs, risky bets or the same Ponzi-scheme unraveling that brought down fraudsters such as Bernie Madoff. Ahead of that deadline, some P2P companies shut down without warning rather than try to comply. In response, investors began pulling their money out en masse, leading to a run on funds and the collapse of several key players. New P2P companies and platforms are strictly banned.

Source: Washington Post September 03, 2018 10:07 UTC