Tuesday, February 18, 2025

China Nabs Crypto Pyramid Scheme Ringleader After Global Pursuit

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Originally published on: August 23, 2024

The Chinese government has successfully brought Zhang Moumou, the orchestrator of a widespread cryptocurrency pyramid scheme, back to China from Thailand, concluding an extensive worldwide pursuit.

This development signifies a significant accomplishment for China, as this is the first instance where a suspect involved in economic crimes has been extradited from Thailand since the signing of the China-Thailand Extradition Treaty in 1999.

Zhang’s extradition on August 20 marks a crucial milestone in the global battle against economic offenses, especially within the rapidly growing digital currency industry.

The fugitive, who has been evading authorities since 2020, was the leader of the infamous MBI Group. Since its inception in 2012, this illicit organization has been operating an intricate online pyramid scheme, enticing individuals by offering virtual digital currency and pledging substantial returns on investments.

To join the platform, participants were compelled to pay fees ranging from 700 to 245,000 yuan ($98 to $34,316), with their earnings contingent on recruiting new members and the amount of capital invested. Over 10 million people got ensnared in the scheme, with the total funds involved surpassing 100 billion yuan ($14 billion).

Due to the extent and complexity of the MBI Group’s activities, Zhang became one of China’s most wanted economic crime suspects. The case against Zhang was formally filed by the Chongqing Municipal Public Security Bureau in November 2020. By March 2021, a red notice for his arrest was issued by the Interpol China National Central Bureau.

Although Thai police apprehended Zhang on July 21, 2022, successfully extraditing him was a challenging process.

China’s request for Zhang’s extradition was made in compliance with the bilateral treaty between China and Thailand. The Thai Court of Appeal’s final decision in favor of his extradition was issued on May 21, 2024, and the Thai government ratified this verdict on August 14, paving the way for Zhang’s repatriation to China shortly thereafter.

This triumphant operation was a collaboration between China’s Ministry of Public Security, the Chinese Embassy in Thailand, and Thai law enforcement bodies, operating under the Ministry’s “Fox Hunting Operation.”

Despite China’s ban on cryptocurrencies, its populace remains susceptible to cryptocurrency investment scams. In 2021, China imposed a comprehensive ban on Bitcoin, effectively freezing all cryptocurrency transactions, as part of a widespread governmental effort to crack down on digital currencies.

Despite the restrictions on cryptocurrency transactions, Chinese authorities recognize crypto as virtual property, granting investors legal protection and permitting them to possess digital assets.

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