Chen Wei accumulated losses of over 489,400 yuan ($71,154) from lending platform Jiedaibao, operated by Renrenxing; the Chinese platform facilitated transactions between borrowers and lenders, allowing lenders to set their own interest rates and manage their own credit lending strategies; Renrenxing managed oversight of the platform including responsibility for collections; Chen’s strategy was to borrow from platform lenders at low rates and lend to borrowers at higher rates, benefiting from the difference; Chen initially reported success but then increased borrower defaults led to losses of over 489,400 yuan ($71,154); Chen was subpoenaed by Jiedaibao for the funds he owed; Jiedaibao later dropped the case but Chen is now suing Renrenxing for the money owed from borrowers; more than 30 users have now filed court cases against Renrenxing for payments totaling over 22.5 million yuan ($3.27 million); new regulations have now been instituted to stop intermediaries from offering protection against losses. Source
