Alibaba (Also AliExpress) CEO, COO Resign after Fraud Probe

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Alibaba CEO, COO Resign After Fraud Probe

AliExpress is a part of Alibaba.com

This may mean that Alibaba is a little safer now, but does speak of the wide spread problem of Chinese vendor fraud.

The company said 100 sales representatives, out of a total workforce of 14,000, allegedly involved in defrauding customers were fired. Some supervisors and sales managers had either intentionally or negligently allowed the creation of fraudulent "storefronts" by letting some 2,326 suppliers evade authentication and verification measures, it said.

Most purchases involved offerings of popular consumer electronics at bargain prices with low required minimum orders. "The methods of the perpetrators suggest that they have engineered an organized and systemic attack on the integrity of the Alibaba.com platform for illegal gains," the company said.