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Summary Alibaba.com has replaced its chief executive and chief operating officer after a noticeable increase in fraudulent transactions at the Chinese e-commerce firm's website.
CEO David Wei Zhe and Chief Operating Officer Lee Shi-huei Elvis have resigned, Alibaba.com said in a statement on Monday. The company said that Lee and Wei were not personally involved in any of the claims and that they had made good faith efforts to address the problem, but were resigning to take responsibility for a systemic breakdown.Alibaba.com operates a business model similar to eBay, providing a platform for online clients to sell to each other, though Alibaba.coms focus is in business-to-business transactions. Alibaba.com, a unit of Alibaba Group, which is 40 percent owned by Yahoo, said in the statement there were 1,219 fraud cases in 2009 and 1,107 in 2010, with the average value per less than $1,200.
