China’s Ministry of Public Security has recently announced the extradition of Zhang Moumou, who allegedly led a massive $14 billion crypto pyramid scheme, from Thailand to China. Reportedly, this marks China’s first extradition of a financial criminal suspect through the 1999 China-Thailand extradition treaty.
China-Thai Hunting Fox
According to the Ministry of Public Security’s announcement, Chinese and Thai authorities have been searching for the suspect via a special group formed called the “Hunting Fox.” Zhang is allegedly the head of the notorious MBI Group, which operated an online pyramid scheme. The team misled investors by issuing cryptocurrencies and promising high returns on investments.
The Sophisticated Pyramid Scheme
The notorious MBI Group orchestrated the scheme that lured people into joining the program, which required a fee of 700 to 245,000 yuan ($98 to $34,316). The authorities revealed that the team ensnared more than 10 million people, with funds accumulated exceeding a massive 100 billion yuan, equivalent to $14 billion.
Interpol’s Red Notice
Zhang was considered one of the most wanted financial criminals in China, considering the complexity of the MBI group’s illegal operations. The Chongqing Municipal Public Security Bureau filed a case against Zhang in November 2020. In March 2021, the Interpol China National Bureau issued a red notice for the accused’s arrest. In July 2022, the Thailand police arrested him. Subsequently, in May 2024, Thailand’s court issued an order for Zhang’s extradition to China.
China’s Ban on Crypto
China banned cryptocurrency trading in 2021, citing the increasing fraudulent activities and scams. Despite China’s official ban on trading Bitcoin and other cryptocurrencies, the country acknowledges crypto as a virtual property, allowing investors to hold it.
First Withdrawal Liquidity Case in China: College Student Yang Got Arrested
Over the past few years, the community has witnessed rumors hinting at China’s crypto ban withdrawal. Despite these rumors, crypto trading is still illegal in China. In a recent Anti-Money Laundering (AML) update, China marked virtual asset transactions as a method of money laundering.
