There is drama today at leading Chinese peer to peer lending platform Dianrong.
Dainrong was founded in 2012 by Soul Htite, a prominent Fintech executive who was the former CTO of Lending Club. In fact, the online lender has been described as the “LendingClub of China.
In January of 2018, the P2P lender raised $70 million as rumblings of a possible initial public offering started to reverberate.
According to an Insider, the CFO of Dianrong, attacked an employee today who was attempting to protect the company’s “stamp” from an alleged theft.
Allegedly, Dianrong senior executive Cui Yawen beat up the cousin of Dianrong CEO, Long Hsiang Loh, in front of other employees. The executive in question was taken into police custody while the individual that was said to have been assaulted ended up in the hospital.
The outraged executive reportedly screamed at other employees telling them they were all fired.
Peer to peer lending in China is a huge business – the largest online lending market in the world. But recently, the sector has cooled as new compliance mandates, and rampant fraud, have caused the online lending industry to slow.
The chatter in China is that government authorities have told online lenders to stop advertising while restricting executives from leaving the country.
As of this writing, it is unclear as to the impact, if any, of the allegations of theft and assault may have on the company.
Update: According to a source, the CFO who allegedly assaulted the employee has been dismissed from Dianrong.