Chinese Authorities extradite $14 Billion Crypto Pyramid Scheme Suspect from Thailand

Chinese authorities announced today the extradition of a suspect named Zhang Moumou, the alleged mastermind that led a massive $14 billion cryptocurrency pyramid scheme after an extensive global manhunt.

After the treaty of extradition between China and Thailand came into force in 1999, Zhang is the first suspected financial criminal to be extradited.

Chinese and Thai authorities established a special working group named "Fox Hunting Operation" for the global pursuit. Zhang was extradited to China on Wednesday, according to a statement released by China's Ministry of Public Security today. Zhang is accused of masterminding the "MBI Group" scam, which began in 2012 and tricked investors into paying fees of between 700 and 245,000 yuan ($34,300) to become members by issuing cryptocurrency.

According to the authorities, the group used promises of large returns to entice over 10 million members, with over 100 billion yuan ($14 billion) in funds involved. Zhang was the subject of a formal complaint filed by the Chongqing Municipal Public Security Bureau. The police in Chongqing, a first-tier city in Southwest China, announced that they had opened an investigation into Zhang in November 2020.

Zhang received a red notice from Interpol China National Central Bureau in March 2021. Subsequently, in July 2022, he was taken into custody by Thai police. In compliance with their bilateral treaty with Thailand, China requested Zhang's extradition. On May 21, 2024, the Thai Court of Appeal rendered a definitive decision in support of extradition. The Thai government then affirmed this ruling on August 14, paving the way for Zhang's return to China a few days later.

China has banned cryptocurrencies, but the populace is still susceptible to scams involving cryptocurrency investments. In 2021, as part of a multi-agency crackdown on digital currencies, China enacted a comprehensive ban on Bitcoin, thereby stopping all cryptocurrency transactions.

Police in the Southeast Chinese province of Sichuan are said to have busted an underground bank operation in May. The operation involved the exchange of foreign currencies using the USDT stablecoin, with at least 13.8 billion yuan and approximately $1.9 billion in transactions. By using Tether (USDT) as a medium, the suspects circumvented national foreign exchange supervision and illegally provided foreign exchange settlement channels.

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