China Extradites Suspect of a $14B Crypto Pyramid Scheme From Thailand

Authorities in China have extradited Zhang Moumou, who is suspected to have led a massive crypto pyramid scheme, from Thailand.

In an official announcement, the Chinese Ministry of Public Security (MPS) revealed that Zhang was allegedly the mastermind behind a $14 billion crypto pyramid scheme that defrauded over 10 million people.

How the Scheme Unfolded

The MPS revealed that since 2012, Zhang was the leader of the “MBI Group,” a notorious criminal organization that ran an elaborate crypto pyramid scheme. The group allegedly lured victims by issuing virtual digital currencies with promises of high returns.

The unsuspecting victims were required to pay membership fees ranging from 700 yuan ($98) to $245,000 yuan ($34,316). Participants’ earnings were determined by the number of new members they recruited and the amount invested in the platform.

According to the MPS, the group was able to lure more than 10 million victims, with the total amount involved exceeding 100 billion yuan ($14 billion).

International Hunt For Zhang

Zhang immediately went on the run in November 2020 when the Chongqing Municipal Public Security Bureau officially initiated an investigation into the group’s operation and filed a case against Zhang.

In March 2021, the Interpol China National Central Bureau issued a red notice against Zhang, due to the scale of the group’s operation. Zhang was finally arrested by the police in Thailand on July 21, 2022.

The Chinese government quickly requested to extradite Zhang in line with the bilateral extradition treaty between both countries. On May 21, 2024, the Thai Court of Appeal ruled to extradite Zhang to China and on August 14, 2024, the Thai government decided to support the court’s final ruling.

The MPS noted that Zhang is the first financial criminal suspect to be extradited through the China-Thailand Extradition Treaty since both countries signed the treaty in 1999. Authorities stated that the success of the operation was largely because of the coordinated efforts between relevant domestic departments, the Chinese Embassy in Thailand, and Thai law enforcement agencies, working under the MPS’s “Operation Fox Hunt.”

A spokesperson for the “Operation Fox Hunt” workgroup stated that Zhang’s successful extradition highlights the country’s commitment to protecting the rights and interests of citizens.

Despite the blanket ban placed on crypto transactions by the Chinese government, citizens have continued to adopt digital assets.