Chinese authorities have revealed they have extradited a “mega economic crime” suspect with the help of Thai security forces. The man is alleged to be the mastermind behind a $14 billion Ponzi scheme involving cryptocurrencies, making his extradition the first involving economic crimes between the two countries.
Cryptocurrency fraudster extradited from Thailand
On Friday, China's Ministry of Public Security (MPS) announced The successful extradition of Zhang Moumou from Thailand as part of “Operation Fox Hunt”. The operation was a collaborative effort between the Chinese embassy in Thailand, Thai authorities, the MPS and relevant national departments to successfully deport the suspected criminal to China.
The extradition took place on Tuesday night, making Zhang the first economic crime suspect extradited by China from Thailand since the creation of an extradition treaty between the countries in 1999.
The criminal, who was on the run from 2020 to 2022, is suspected of having organized and directed a cryptocurrency network. pyramid scheme which affected millions of people, leading the authorities to label him as a “suspect of a major economic crime.”
The head of the “Operation Fox Hunt” office said the successful extradition of the suspect is a “great achievement of police and judicial cooperation between China and Thailand.” He also stressed the importance of this milestone for consolidating a cooperative relationship between the countries and other nations in the future.
Zhang's $14 billion pyramid scheme
According to the report, Zhang allegedly operated and was the head of the MBI Group since 2012. The organization ran an online cryptocurrency pyramid scheme that lured users with cryptocurrency and promised high returns. returns on investments.
MBI customers were asked to pay fees ranging from 700 yuan to 245,000 yuan, roughly $98 and $34,300. The “fees” were required to obtain membership to the cryptocurrency platform. Additionally, participants were offered incentives to recruit new users, with earnings tied to the number of new members brought in and the amount invested by victims.
Using this method, the cryptocurrency scheme managed to ensnare more than 10 million members between 2012 and 2019, with the total amount involved exceeding 100 billion yuan, worth around 14 billion US dollars.
In 2020, the Chongqing Municipal Public Security Bureau (PSB) began investigating Zhang after filing a complaint against the offender. Following the investigation, China's National Central Bureau (NCB) of Interpol issued a red notice for the fugitive in 2021.
Zhang, who had been on the run for two years, was captured by Thai police on July 21, 2022. After the arrest, Chinese authorities filed a extradition request under the bilateral extradition treaty, and was granted in May 2024 by the Thai Court of Appeal.
The Thai government ultimately upheld the court's final decision on August 14, setting an end to the international manhunt for August 20, 2024.
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