$14 Billion Crypto Scam: Chinese Authorities Extradite Pyramid Scheme Leader

As a researcher with a focus on financial crimes and digital currencies, I find this case to be both intriguing and concerning. The extradition of Zhang Moumou from Thailand marks a significant milestone in international cooperation against economic crimes. It’s a stark reminder that the anonymity offered by cryptocurrencies can sometimes serve as a shield for criminal activities on a massive scale.


Chinese officials announced that they successfully handed over a suspect linked to a significant financial crime, with assistance from Thai police forces. The individual is accused of orchestrating a $14 billion pyramid scam involving cryptocurrencies, marking the first extradition concerning economic crimes between the two nations.

Crypto Scammer Extradited From Thailand

Last Friday, the Ministry of Public Security (MPS) in China reported that they had successfully extradited Zhang Moumou from Thailand as part of “Operation Fox Hunt.” This operation was a joint effort involving the Chinese embassy in Thailand, Thai authorities, the MPS, and relevant domestic departments to ensure the deportation of the suspected criminal back to China.

As a researcher, I’m sharing an interesting development: On Tuesday evening, I observed the extradition of Zhang, marking the first instance under the 1999 extradition treaty between China and Thailand, where an economic crime suspect has been extradited from Thailand by China.

From 2020 to 2022, this individual, known as a fugitive, is under suspicion for masterminding and heading a large-scale cryptocurrency pyramid scam. This deception reportedly impacted numerous people significantly enough for them to be classified as a “significant economic crime suspect” by the relevant authorities.

The official overseeing “Operation Fox Hunt” announced that the capture and extradition of the suspect was a significant accomplishment, reflecting the strong collaboration between China’s law enforcement and Thai judiciary. Moreover, they emphasized the importance of this event as a stepping stone towards strengthening cooperative ties not only between China and Thailand but also among other nations in the future.

Zhang’s $14 Billion Pyramid Scheme

According to the findings, it is alleged that Zhang has been running and leading the MBI Group since 2012. This group managed an internet-based cryptocurrency Ponzi scheme, luring participants with offers of cryptocurrencies and guaranteed high profits from their investments.

MBI clients were requested to pay membership fees that ranged from 700 Chinese Yuan to a maximum of 245,000 Yuan, equivalent to approximately $98 to $34,300 USD. These fees were necessary for gaining access to the cryptocurrency platform. Furthermore, participants were given rewards for bringing in new users, with their earnings directly related to the number of new members they introduced and the amount invested by those they attracted.

As a researcher studying cryptocurrencies, I found that this particular scheme attracted and retained approximately 10 million members between 2012 and 2019. The cumulative value of transactions within this period surpassed an astounding 100 billion Yuan, which is roughly equivalent to $14 billion in U.S. dollars.

In the year 2020, authorities at Chongqing Municipal Public Security Bureau started probing Zhang following the submission of a case against him regarding criminal activities. The outcome of this investigation led to the Chinese National Central Bureau of Interpol issuing a red notice warning for the elusive suspect in 2021.

On July 21, 2022, Thai police apprehended Zhang, who had been evading capture for two years. Following his arrest, Chinese authorities requested extradition under the mutual extradition agreement, which was approved by Thailand’s Court of Appeal in May 2024.

As a researcher, I can express this finding as follows: On August 14, the Thai government officially endorsed the court’s verdict, marking August 20, 2024, as the culmination of the international manhunt they have been actively participating in.

$14 Billion Crypto Scam: Chinese Authorities Extradite Pyramid Scheme Leader

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2024-08-24 13:42