Crypto Pyramid Scheme Mastermind Extradited to China from Thailand

Crypto pyramid scheme mastermind Zhang Moumou has been extradited from Thailand to China after an international manhunt.

According to a report from local Chinese media outlet The Paper, the incident marks the first successful extradition of an economic crime suspect from Thailand under the China-Thailand Extradition Treaty, signed in 1999.

Since 2012, Zhang led the MBI Group, a criminal organization that operated a sophisticated online pyramid scheme.

The scheme lured victims by issuing virtual digital currencies and promising them high returns on their investments.

Participants Were Required to Pay Up to $34,000 in Fees

Participants were required to pay fees ranging from 700 to 245,000 yuan ($98 to $34,316) to join the platform, with earnings tied to recruiting new members and the amount of funds invested.

Over the years, the scheme ensnared more than 10 million people, with the total funds involved exceeding 100 billion yuan ($14 billion).

The scale and complexity of MBI Group’s operations placed Zhang among China’s most wanted economic crime suspects.

这个新闻的“1000亿”还是写的保守了，我18年的时候就写过他们，根据数据，MBI当年至少吸纳资金高达5000亿，祖师爷级别！

估计很多人不知道MBI这个集团，这是马来西亚跨国传销资金盘的鼻祖，2012年开始运营，什么华英会、分投趣、ACE、普塔道看了全得喊一句大哥。

他搞了三个东西——… pic.twitter.com/LAH17ewGVU

— BITWU.ETH (@BTW0205) August 23, 2024

In November 2020, the Chongqing Municipal Public Security Bureau officially filed charges against Zhang, and by March 2021, the Interpol China National Central Bureau had issued a red notice for his arrest.

Zhang’s apprehension by Thai police on July 21, 2022, marked a critical breakthrough in the case.

However, the extradition process was complex and drawn out.

China formally requested Zhang’s extradition under the bilateral treaty with Thailand, leading to the Thai Court of Appeal’s final ruling in favor of extradition on May 21, 2024.

The Thai government confirmed the decision on August 14, paving the way for Zhang’s return to China just days later.

The operation was a coordinated effort between China’s Ministry of Public Security, the Chinese Embassy in Thailand, and Thai law enforcement agencies, all working under the framework of China’s “Fox Hunting Operation.”

Despite China’s stringent ban on cryptocurrency transactions since 2021, the population remains vulnerable to crypto investment scams.

While cryptocurrency transactions are restricted, Chinese authorities recognize crypto as virtual property, providing legal protection for investors to hold digital assets.

Illicit Crypto Transactions Drop in 2024

A recent Chainalysis report revealed a decline in overall illicit cryptocurrency transactions in 2024, even as specific types of criminal activities within the sector surged.

Released on August 15 as part of the mid-year crypto crime update, the report found that hacking and ransomware attacks were becoming increasingly prevalent.

Two categories, in particular – stolen funds through hacking and ransomware attacks – have seen an uptick.

By the end of July, the cumulative value of stolen cryptocurrencies had reached $1.58 billion – an 84% increase compared to the same period in 2023.

While the number of hacking incidents only increased slightly (2.8% year-over-year), the average value stolen per hack surged dramatically.

In July alone, hackers stole approximately $266 million through 16 separate breaches, dealing the crypto sector substantial losses.

The July 18 attack on Indian crypto exchange WazirX stands out. The attack alone accounted for over $230 million, or 86.4%, of the month’s total losses.