Jonathan Lu, CEO of Alibaba Group's Tao Bao Holding, succeeds to Wei's duties as CEO. Elvis Lee, COO of Alibaba.com, also resigned in conjunction with the investigation, which found a rise in fraud claims against suppliers listed on Alibaba.com.
Alibaba.com said it has terminated the storefronts of more than 2,000 China Gold suppliers that were determined to have committed fraud against Alibaba.com buyers. Alibaba.com said these suppliers represented about 1% of suppliers registered as China Gold suppliers in 2009 and 2010.
In a press release, Alibaba.com called the incidents a “systemic breakdown in our company's culture of integrity.”