Extradition of Crypto Pyramid Scheme Leader to China After International Pursuit

As the popularity of digital currencies continues to rise globally, the associated risks of economic crimes also grow.

Extradition News

The Chinese authorities have confirmed the extradition of Zhang Moumou, the alleged leader of a vast crypto pyramid scheme, from Thailand to China after an extensive international search.

This incident marks a significant achievement as it is the first successful extradition of an economic crime suspect from Thailand since the signing of the China-Thailand Extradition Treaty in 1999, as reported by local media.

The Pursuit of Zhang

On August 20, Zhang’s extradition was seen as a noteworthy development in the ongoing global efforts to combat economic crime, particularly within the rapidly changing digital currency landscape.

Zhang, who has evaded capture since 2020, was the head of the infamous MBI Group. This organization has been implicated in a complex online pyramid scheme that started in 2012, attracting victims by issuing virtual currency and promising substantial investment returns.

• Fees to join ranged from 700 to 245,000 yuan ($98 to $34,316).
• Earnings were contingent on the recruitment of new members and the amount invested.
• The scheme impacted over 10 million individuals.
• Total funds involved exceeded 100 billion yuan ($14 billion).

The extensive operations of the MBI Group ranked Zhang among the most wanted suspects in China for economic crimes. In November 2020, local authorities began a formal investigation against him, and by March 2021, Interpol had issued a red notice for his arrest.

From Arrest to Extradition

Zhang was apprehended by Thai law enforcement on July 21, 2022, which marked a pivotal point in this case, but the journey to extradition was complex.

The request for Zhang’s extradition was made following the bilateral treaty between China and Thailand. The Thai Court of Appeal ruled in favor of extradition on May 21, 2024, and on August 14, the Thai government confirmed the decision, allowing for Zhang’s return to China shortly thereafter.

This operation was a success due to the collaborative efforts of China’s Ministry of Public Security, the Chinese Embassy in Thailand, and the Thai police, all part of the Ministry’s “Fox Hunting Operation.”

Despite a ban on cryptocurrencies in China, the population remains susceptible to crypto investment scams. China imposed a comprehensive prohibition on Bitcoin in 2021, halting all cryptocurrency transactions as part of a multi-agency crackdown.

Despite these restrictions, Chinese authorities acknowledge cryptocurrencies as virtual property, which provides investors with some legal protections and allows them to maintain their digital assets.