Chinese authorities have revealed that they have extradited a suspect in a “massive economic crime” with the help of Thai law enforcement. The man is alleged to be the mastermind behind a $14 billion pyramid scheme involving cryptocurrencies, making his extradition the first involving economic crimes between the two countries.
Cryptocurrency scammer extradited from Thailand
China’s Ministry of Public Security announced on Friday It was announced The successful extradition of Zhang Mumu from Thailand as part of “Operation Fox Hunt”. The operation was a collaborative effort between the Chinese Embassy in Thailand, Thai authorities, the Ministry of Public Security and relevant local departments to successfully deport the suspected criminal back to China.
Zhang was extradited on Tuesday evening, becoming the first economic crime suspect to be extradited to China from Thailand since the two countries signed an extradition treaty in 1999.
The criminal, who was on the run from 2020 to 2022, is suspected of organizing and leading a cryptocurrency pyramid scheme that affected millions of people, earning authorities the title of “suspect of major economic crime.”
The official in charge of the “Operation Fox Hunt” office said that the successful extradition of the suspect was “a major achievement in the field of law enforcement and judicial cooperation between China and Thailand.” They also highlighted the importance of this achievement in strengthening cooperative relations between the two countries and other countries in the future.
Zhang’s $14 Billion Pyramid Scheme
According to the report, Zhang allegedly ran and was the chairman of MBI Group since 2012. The organization ran an online cryptocurrency pyramid scheme that lured users with cryptocurrencies and promised high returns on investments.
MBI clients were required to pay fees ranging from 700 yuan to 245,000 yuan, equivalent to roughly $98 and $34,300. The “fees” were required to gain membership on the crypto platform. Additionally, participants were offered incentives for recruiting new users, with earnings tied to the number of new members brought in and the amount the victims invested.
Through this method, the crypto scheme successfully ensnared more than 10 million members from 2012 to 2019, with the total amount involved exceeding 100 billion yuan, equivalent to about $14 billion.
In 2020, the Chongqing Municipal Public Security Bureau began investigating Zhang after filing a case against the criminal. Following the investigation, the Chinese National Central Bureau of Interpol issued a red notice for the fugitive in 2021.
Zhang, who had been at large for two years, was arrested by Thai police on July 21, 2022. Following the arrest, Chinese authorities filed an extradition request under the bilateral extradition treaty, which was approved in May 2024 by the Thai Court of Appeal.
Ultimately, the Thai government upheld the court’s final decision on August 14, setting the end of the international manhunt for August 20, 2024.
Bitcoin (BTC) is trading at $61,064 in the three-day chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.