China Extradites Alleged Crypto Pyramid Scheme Mastermind from Thailand
The MPS investigation revealed that the MBI Group, operating since 2012, lured victims with promises of high returns on virtual digital currencies.
In a significant development in the ongoing crackdown on financial crimes, China authorities have extradited Zhang Moumou, the alleged mastermind behind a massive crypto pyramid scheme, from Thailand.
The Chinese Ministry of Public Security (MPS) announced that Zhang is allegedly leading the “MBI Group,” which defrauded over 10 million people in a scheme estimated to have involved over $14 billion.
Investigation Discovery on MBI Group
The MPS investigation revealed that the MBI Group, operating since 2012, lured victims with promises of high returns on virtual digital currencies.
According to the report, Members had to pay membership fees between $98 and $34,316, and their income depended on how many new members they recruited to the platform.
Furthermore, The scheme’s reach was widespread, with the MPS reporting that more than 10 million individuals fell victim, leading to a total loss of over $14 billion.
The group’s activities came under official scrutiny in November 2020 when the Chongqing Municipal Public Security Bureau initiated an investigation and filed charges against Zhang.
Fearing prosecution, Zhang fled China and was eventually apprehended by Thai authorities on July 21, 2022. The scale of the MBI Group’s operation prompted Interpol China to issue a red notice against Zhang in March 2021.
Following a request for extradition by the Chinese government, the Thai Court of Appeal ruled in favor of Zhang’s return on May 21, 2024.
The Thai government subsequently endorsed the court’s decision on August 14, 2024, marking a significant milestone in the fight against transnational financial crime.
China Seize Zhang of Pyramid Scheme
Zhang’s extradition is noteworthy as the first successful case under the China-Thailand Extradition Treaty signed in 1999.
Authorities have attributed the success to the coordinated efforts of domestic departments, the Chinese Embassy in Thailand, and Thai law enforcement agencies, all working under the MPS’s “Operation Fox Hunt.”
A spokesperson for the “Operation Fox Hunt” workgroup highlighted the significance of Zhang’s extradition, emphasizing China’s commitment to safeguarding the rights and interests of its citizens.
The operation highlights the complexities of combating financial crimes in an increasingly interconnected world, particularly in light of the growing popularity of digital assets despite regulatory restrictions.
