It's believed the financial fraud may be the biggest in Chinese history.
State media outlets reported the arrests and state broadcaster C-C-T-V aired purported confessions from two former employees at Ezubao, an Anhui Province outfit that rose from anonymity to become China's largest online financing platform in the space of about 18 months.
Investigators found about 95 per cent of the investments offered on Ezubao were fake.
Chinese authorities have struggled to regulate the sudden boom of online investment schemes that promise higher returns than those at traditional banks.
The industry has attracted a flood of investment from China's middle class.
