Alibaba.com, the world’s largest online marketplace for trade between businesses, has replaced its chief executive after sales staff were found to have helped set up fraudulent online shopfronts.
David Wei, chief executive, and Elvis Lee, chief operating officer, both resigned on Monday to take responsibility for the “systemic breakdown in our company’s culture of integrity”, Alibaba said.
The company said an internal investigation found that more than 2,000 of its “China Gold Suppliers” – companies certified by Alibaba as legitimate, credible businesses – had engaged in fraud against buyers, and that about 100 field sales people had allowed the fraudsters to evade its verification measures.
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