It has come to light that Chinese individuals who fell victim to banking fraud were held in custody for several months following their protests, as we delve into the intricate details of the $4.2 billion scandal.
Chinese who lost money in bank fraud detained for months after protest https://t.co/Cv41ppjF3e pic.twitter.com/7Ixg8q7IFE
— Reuters (@Reuters) June 5, 2024
In February, Ou Yangyun, an entrepreneur from Changsha, made a journey to Zhengzhou to express his dissatisfaction after his bank account, which held a substantial sum of money, was subjected to a freeze. His family anticipated his prompt return home to commemorate the Lunar New Year with his twins. However, Ou, along with over a dozen others, was apprehended. These individuals were part of the group of 600,000 people who were impacted by one of China’s biggest banking frauds. They lost their savings in a scandal worth $4.2 billion, which involved four rural banks in Henan province.
The demonstrators, clad in winter attire, paraded through the streets for approximately 30 minutes prior to being apprehended by law enforcement. Although the majority of individuals were freed shortly after their arrest, Ou and two other individuals are still being held in jail. They encountered severe circumstances, such as spoiled food and restricted sleep. The extended incarceration of these demonstrators, who are usually released within a few days, underscores the government’s sensitivity to the growing unrest associated with economic hardship.
This incident, although not directly attributable to China’s decelerating economy, highlights the weaknesses within the rural banking industry. China has experienced a significant rise in economic protests, with Freedom House reporting a climb of 127% in late 2023. The demonstrations have been motivated by concerns such as outstanding salaries, incomplete construction projects, and fraudulent investment schemes. In response to increasing economic difficulties, the central government seeks to avert major social upheaval.
Ou’s family and other others impacted persist in their pursuit of justice. Although there has been some reimbursement for individuals with minor deposits, more than 1,000 individuals are still waiting to be repaid. The incident entailed intricate fraudulent activities conducted by Xincaifu Group, in collaboration with bank employees, to divert monies. Five individuals associated with Xincaifu have received substantial prison sentences, however, numerous depositors are still pursuing a resolution.
The protracted conflict highlights the substantial influence of financial fraud on regular individuals and prompts inquiries regarding the stability and oversight of China’s rural banks. While the families of Ou and others await justice, the wider ramifications of this scandal are still being revealed.
(The story is published based on the data from a syndicated feed. However there can be minor changes from the original source article.)
