$14 Billion Crypto Scam: Chinese Authorities Extradite Pyramid Scheme Leader

Chinese authorities revealed they extradited the suspect of a “mega 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, which makes his extradition the first related to economic crimes between the two countries.

Crypto Scammer Extradited From Thailand

On Friday, China’s Ministry of Public Security (MPS) announced the successful extradition of Zhang Moumou from Thailand as part of the “Operation Fox Hunt.” The operation was a collaborative effort between the Chinese embassy in Thailand, Thai authorities, the MPS, and relevant domestic departments to successfully deport the suspected criminal back to China.

The extradition took place on Tuesday evening, making Zhang the first economic crime suspect to be extradited by China from Thailand since the creation of the extradition treaty between the countries in 1999.

The criminal, who was on the run from 2020 until 2022, is suspected of having organized and led a crypto pyramid scheme that affected millions of people, which granted the label of a “major economic crime suspect” by authorities.

The person in charge of the “Operation Fox Hunt” office stated that the successful extradition of the suspect was a “major achievement of the law enforcement and judicial cooperation between China and Thailand.” Additionally, they highlighted the significance of the milestone for consolidating a cooperative relationship between the countries and other nations in the future.

Zhang’s $14 Billion Pyramid Scheme

Per the report, Zhang allegedly operated and was the head of the MBI Group since 2012. The organization ran an online crypto pyramid scheme that attracted users with crypto and promised high returns on investments.

MBI customers were asked to pay fees ranging from 700 Yuan to 245,000 Yuan, around $98 and $34,300. The “fees” were required to obtain membership to the crypto platform. Additionally, participants were offered incentives for recruiting new users, with the earnings tied to the number of new members brought and the amount invested by the victims.

Through this method, the crypto scheme managed to entrap over 10 million members from 2012 to 2019, with the total amount involved exceeding 100 billion Yuan, worth around $14 billion.

In 2020, Chongqing Municipal Public Security Bureau (PSB) began investigating Zhang after filing a case against the criminal. Following the investigation, the Chinese National Central Bureau (NCB) of Interpol issued a red notice alert for the fugitive in 2021.

Zhang, who had been at large for two years, was captured by Thai police on July 21, 2022. After the arrest, Chinese authorities submitted an extradition request under the bilateral extradition treaty, and it was granted in May 2024 by Thailand’s Court of Appeal.

Ultimately, Thailand’s government supported the court’s final decision on August 14, setting the end of the international manhunt to August 20, 2024.