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¡¡¡¡Nowadays in China£¬ with the rapid development of the economy£¬ various traditional or non traditional private financing methods are emerging in an endless stream£¬ especially for a large number of small and medium-sized enterprises £¨SME£© with poor credit standing and difficulty in borrowing from banks. Therefore£¬ turning to private lending has become an inevitable choice £¨many large corporations are also often involved when they consider that the capital borrowed from bank is insufficient£©. Although there is no lack of real business behavior during the course of private financing£¬ often crowd-funding£¬ there are quite a few people who commit crimes by using private fund-raising methods at the same time£¬ among which fraudulent fund-raisings with Ponzi scheme elements came out one after another£¬ involving numerous victims and huge quantity of money. It has become not only a legal but also a deep-seated social and political issue. .At present£¬ the problems caused by fund-raising have crossed national borders and spread overseas. such as the Luckin Coffee scandal in the United States that has caused heated discussions. The results of this are discussions about the foreign legislative of restricting Chinese companies' overseas fund-raisings and local capital inflows into China£¬ as well as speculation about how China will investigate and handle such cases. To be sure£¬ China has always held a semi-repressive attitude towards private financing£¬ resulting in the convictions for a large number of private fund-raising activities. As far as the current legislative and judicial situations are concerned£¬ the convictions for some of the private fund-raising activities are appropriate and reasonable£¬ while for others£¬ there exists a high possibility of over-struck.