Cryptocurrency Ponzi Scheme Leader Extradited to China
Date: 2024-08-23 Author: Henry Casey Categories: IN WORLD
Chinese authorities have announced that Zhang Moumao, the mastermind behind a major cryptocurrency Ponzi scheme, has been extradited from Thailand to China.
According to local media, this is the first time China has extradited a suspected economic crime from Thailand since the two countries signed an extradition treaty in 1999.
Zhang’s extradition is a major step in the global fight against economic crime, especially in the fast-growing digital currency sector.
Zhang, who has been on the run since 2020, led the infamous MBI Group. Since 2012, the criminal group had been running a sophisticated online Ponzi scheme, luring victims by offering them virtual digital currency and promising high returns on their investments.
Participants in the scheme had to pay fees of between 700 and 245,000 yuan ($98 to $34,316) to join the platform, and their earnings were based on how many new members they recruited and how much money they invested. The scheme eventually involved more than 10 million people, with the total funds involved exceeding 100 billion yuan ($14 billion).
The scale and sophistication of MBI Group’s operations made Zhang one of China’s most wanted economic crime suspects. In November 2020, the Chongqing Municipal Public Security Bureau formally opened a case against Zhang, and by March 2021, Interpol had issued a red notice for his arrest.
Zhang’s capture by Thai police on July 21, 2022, was a major breakthrough, but his extradition process has been difficult.
Zhang’s extradition request was made by China under a bilateral treaty between China and Thailand. The Thai Court of Appeal issued a final ruling in favor of extradition on May 21, 2024, which was confirmed by the Thai government on August 14, after which Zhang was extradited to China a few days later.
This successful operation was the result of coordinated efforts by the Chinese Ministry of Public Security, the Chinese Embassy in Thailand, and Thai law enforcement agencies operating under Operation Fox Hunt.
Despite the ban on cryptocurrencies in China, the country’s population is still vulnerable to cryptocurrency investment scams. In 2021, China imposed a complete ban on Bitcoin, effectively halting all cryptocurrency transactions as part of a multi-pronged effort to crack down on digital currencies.
While cryptocurrency transactions are restricted, Chinese authorities recognize cryptocurrencies as virtual property, providing investors with legal protection and allowing them to own digital assets.
