China Extradites Mastermind Behind $14bn Crypto Pyramid Scheme

The Chinese government has announced that the mastermind behind a $14 billion crypto pyramid scheme, Zhang Moumou has been extradited from Thailand to China following an extensive international manhunt.

Zhang allegedly masterminded a massive pyramid scheme involving cryptocurrency to the tune of $14 billion and became the first financial crime suspect to be extradited using the China-Thailand extradition treaty since it took effect in 1999.

The extradition was announced by the Chinese Ministry of Public Security on its official website giving a breakdown of the development from the time the financial crime was committed to the moment of extradition.

“On the evening of August 20, with the strong assistance of relevant domestic departments, the Chinese Embassy in Thailand, and Thai law enforcement agencies, the Ministry of Public Security’s “Fox Hunting Operation” working group successfully extradited Zhang, a major economic crime suspect suspected of organising and leading pyramid selling activities, from Thailand to China. This case is the first economic crime suspect extradited from Thailand by China after the China-Thailand Extradition Treaty came into effect in 1999.”

LEADERSHIP understands that since 2012, the MBI Group, led by the criminal suspect Zhang, has been compelling participants to pay fees ranging from 700 to 245,000 yuan to acquire platform membership.

This was achieved through the issuance of virtual digital currency, enticing high rebates, and utilising the number of recruited members and invested funds as the basis for remuneration or rebates, all to conduct illegal online pyramid schemes.

The group has developed more than 10 million members, and the funds involved exceeded 100 billion yuan.
In November 2020, the Chongqing Municipal Public Security Bureau filed a case against Zhang under the law.
In March 2021, the Interpol China National Central Bureau issued a red notice against him. On July 21, 2022, the Thai police arrested Zhang.

Subsequently, China made an extradition request to Thailand following the bilateral extradition treaty.

The Thai Court of Appeal made a final ruling to extradite Zhang to China On May 21 this year with the Thai government making an administrative decision to support the court’s final ruling on August 14.

An official from the Ministry of Public Security’s “Operation Fox Hunt” office said that the successful extradition of Zhang demonstrated the Chinese government’s firm determination and will to safeguard citizens’ rights and interests, defend the dignity of the law.

“It was a major achievement in China-Thailand law enforcement and judicial cooperation and was of milestone significance in consolidating and deepening the law enforcement and judicial cooperation between the two countries. It will also play a positive exemplary role in the future extradition cooperation between China and other countries.” Chinese Ministry of Public Security stated.

China banned crypto trading activities on the mainland in 2021, however, many investors still found their way around the rules.

The Chinese authorities have been very strict with crypto entities fleshing out stringent policies to tackle those operating in the country.