On April 29, The Wall Street Journal reported that Luckin Coffee was being investigated by the Securities and Exchange Commission (SEC) for accounting fraud. On May 12, based on evidence unearthed during the internal investigation, the Board of Directors toppled Luckin's senior management by terminating CEO Jenny Zhiya Qian and Liu, and removing them from the Board. In addition to Qian and Liu, six other employees who were found complicit or had knowledge of the fabricated transactions were suspended or placed on leave, according to a report released by Luckin.