Analysis of the Ponzi Scheme in P2P Platform: Taking Ezubo as an Example

Abstract

Driven by economic development, P2P online lending platforms have become a new area for the development of the financial industry. The rise of P2P platforms reflected the improvement in people's quality of life and the increasing demand for investment. This is good for economic development, but it also increases the difficulty of market supervision, and investment fraud from the perspective of Ponzi schemes is becoming more and more serious. This paper took Ezubo as an example to study the causes of the Ponzi scheme. According to research, it was found that the formation of a Ponzi scheme was closely related to corporate financial fraud, corporate and P2P risk problems, and social factors. The paper analyzed Ezubo's financial fraud, conducted risk analysis, and made suggestions on risk management and strengthening education. This paper helps to complement the shortcomings of current research on Ponzi schemes, and the advice on such behavior also has some practical implications to help people stay away from investment fraud.