Shell Companies

Two women allege they were scammed out of thousands of dollars in training fees after responding to fraudulent job postings on 58.com, a Chinese online marketplace. Recruited by “Liu Ba Jia Zheng,” they paid fees based on promises of high salaries which proved unattainable. The company allegedly pushed them to establish shell companies and recruit others. Legal experts argue 58.com has a duty to vet job postings to protect job seekers. 58.com has not yet issued a statement.

Shanghai authorities arrested an internet firm executive amid corporate malfeasance concerns. The case involves an executive from a short-video platform, suspected of embezzling 140 million yuan (~$19.4 million USD). He allegedly used shell companies and cryptocurrency laundering, including coin mixing, to hide illicit funds. The platform’s internal audit flagged anomalies in service provider incentives, leading to the discovery. The executive and accomplices fabricated documents for subsidies. Prosecutors traced the funds, leading to convictions ranging from 3 to 14.5 years. Sources suggest Kuaishou is the platform, but official confirmation is pending.