Alibaba.com CEO and COO resign today

Alibaba.com CEO David Wei and COO Elvis Lee resigned today after the Hong Kong-listed, Hangzhou-based company completed an internal investigation into the online fraud of its buyers.

The key points:

- David Wei will be replaced by Taobao CEO Jonathan Lu.

- Board-level internal investigation was completed in January by INED Savio Kwan

- Determined Wei and Lee did not do enough to react to a "noticeably increase in fraud claims by global buyers"

- Ali's management determined that about 100 sales staff (out of 5,000) were either intentionally or negligently allowing fraudsters to set-up online storefronts on Alibaba.com

- This involves some 1,219 China Gold Suppliers who signed up in 2009 and 1,107 who signed up in 2010.

- Wei, Lee and other senior management were cleared of any involvement in the fraudulent activities

- Jack Ma was quoted in the press release "David and Elvis are doing the honourable thing to accept full responsibility for this."

This is the most significant shake-up at Alibaba.com in its history as a listed company. There is certainly more to come over the next few days and weeks.