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As digital currencies continue to gain popularity worldwide, the risk of related economic crimes also increases.
The Chinese government has announced that Zhang Moumou, the mastermind behind a massive crypto pyramid scheme, has been extradited from Thailand to China following an extensive international manhunt.
According to local media, this marks the first time China has successfully extradited an economic crime suspect from Thailand since the two countries signed the China-Thailand Extradition Treaty in 1999.
The hunt for Fraudster Zhang
Zhang’s extradition on Aug. 20 represents a significant milestone in the global fight against economic crime, particularly in the rapidly evolving digital currency sector.
Zhang, who has been on the run since 2020, was the head of the notorious MBI Group. Since 2012, this criminal organization has been running a sophisticated online pyramid scheme, luring victims by issuing virtual digital currency and promising high returns on investment.
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 the recruitment of new members and the amount of funds invested. The scheme eventually ensnared more than 10 million people, with the total funds involved exceeding 100 billion yuan ($14 billion).
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The scale and complexity of the MBI Group’s operations made Zhang one of the most wanted economic crime suspects in China. In November 2020, the Chongqing Municipal Public Security Bureau formally filed a case against Zhang. By March 2021, the Interpol China National Central Bureau had issued a red notice for his arrest.
Crypto Fraudster Zhang’s Arrest to extradition
Zhang’s capture by Thai police on July 21, 2022, was a significant breakthrough, but the extradition process was far from straightforward.
China’s request for Zhang’s extradition was made in accordance with the bilateral treaty between China and Thailand. The Thai Court of Appeal issued a final ruling in favor of extradition on May 21, 2024, and the Thai government subsequently confirmed this decision on Aug. 14, setting the stage for Zhang’s return to China just days later.
This successful operation is the result of coordinated efforts between China’s Ministry of Public Security, the Chinese Embassy in Thailand and Thai law enforcement agencies, all working under the banner of the Ministry’s “Fox Hunting Operation.”
Despite China’s crypto ban, the population is still vulnerable to crypto investment scams. In 2021, China implemented a comprehensive ban on Bitcoin, effectively halting all cryptocurrency transactions, as part of a multi-agency effort to clamp down on digital currencies.
Although cryptocurrency transactions are restricted, Chinese authorities recognize crypto as virtual property, granting investors legal protection and allowing them to hold digital assets.
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