BEIJING—Police in eastern China have detained 36 people in an investigation of fraudulent listings on online trade platform Ltd., the latest development in a scandal that triggered an overhaul at China’s largest e-commerce company and the departure of its chief executive.

Parent company Alibaba Group Holding Ltd., citing information from Hangzhou police, said the people allegedly operated as a group to use fake personal and business identities to open more than 100 accounts on several websites, including, which links small manufacturers with buyers around the world.

Hangzhou police said the people allegedly collected $6.6 million in orders for goods that they never delivered, according to a statement posted on the website of Alibaba Group Holding. Yahoo Inc. owns a roughly 40% stake of Alibaba Group.

A public-relations official in the Hangzhou Public Security Bureau who gave his surname as Chen on Thursday confirmed the detention. He declined to provide details.

The police probe followed a management shake-up at in February, when the company announced that David Wei had resigned as chief executive to take responsibility for the fraud scandal. said Mr. Wei wasn’t directly involved in the scandal, in which some 100 employees colluded with more than 2,300 sellers to create fraudulent listings on the site.

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