Chinese authorities have revealed they have extradited a “mega-economic crime” suspect with the facilitate of Thai law enforcement. The man is allegedly the mastermind behind a $14 billion cryptocurrency Ponzi scheme, making his extradition the first related to economic crimes between the two countries.
Crypto fraudster extradited from Thailand
On Friday, China’s Ministry of Public Security (MPS) announced Successful extradition of Zhang Moumou from Thailand under “Operation Fox Hunt”. The operation was a joint effort by the Chinese Embassy in Thailand, Thai authorities, MPS and relevant national departments to successfully deport the suspected criminal back to China.
The extradition took place on Tuesday evening. Zhang became the first economic crime suspect extradited to Thailand by China since an extradition treaty between the two countries in 1999.
The criminal, who was on the run from 2020 to 2022, is suspected of organizing and directing a crypto-pyramid scheme that affected millions of people, leading the authorities to label him a “suspect of a serious economic crime.”
The head of Operation Fox Hunt said the successful extradition of the suspect was a “major achievement in law enforcement and judicial cooperation between China and Thailand.” It also highlighted the significance of this milestone in consolidating cooperation between the countries and other nations in the future.
Zhang’s $14 billion financial pyramid
According to the report, Zhang allegedly managed and served as the head of MBI Group since 2012. The organization operated an online pyramid scheme that attracted users with cryptocurrencies and promised high returns on investments.
MBI customers were asked to pay fees ranging from 700 yuan to 245,000 yuan, about $98 and $34,300. The “fees” were required to obtain membership on the crypto platform. In addition, participants were offered incentives for recruiting up-to-date users, and the profits were linked to the number of up-to-date members and the amount invested by victims.
Through this method, the cryptocurrency program managed to catch more than 10 million members between 2012 and 2019, and the total amount involved exceeded 100 billion yuan, which is equivalent to about 14 billion dollars.
In 2020, the Chongqing Municipal Public Security Bureau (PSB) began investigating Zhang after filing a case against the criminal. Following the investigation, China’s National Central Bureau (NCB) of Interpol issued a red alert for the fugitive in 2021.
Zhang, who had been at vast for two years, was captured by Thai police on July 21, 2022. Following his arrest, Chinese authorities filed an extradition request under a bilateral extradition treaty, which was granted in May 2024 by the Court of Appeal of Thailand.
Ultimately, the Thai government backed the court’s final decision on August 14, setting the end of the international pursuit for August 20, 2024.
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