He Xin, chairperson of Phoenix Finance, has been placed under criminal detention over illegal absorption of public funds, Chinese authorities announced on Wednesday.
He is the son-in-law of Liu Changle, who founded the broadcaster Phoenix TV and is currently the board chairperson of Phoenix Media Investment.
An online-lending branch of Phoenix Finance is being probed for illegal absorption of funds and as the legal representative of the group, He is being detained for further investigation, the public security bureau of Haikou in Hainan province announced in a statement on Wednesday night.
According to the police, public security agencies across the country are urging victims to report to the authorities to facilitate the investigation. Officers are working to recover their losses and protect the legal rights of the public.
The financial investment platform, founded by Liu in 2014, ran into financial trouble last year. It abruptly stopped all online-lending services in September without issuing any public notice and failed to make principal and interest payments to investors. Seeking to appease concerns, the company attributed the move to delay in repayment.
In November 2020, the company claimed it was coming up with multiple solutions for customers to back out of their deals.
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