Chinese authorities have successfully extradited a suspect in a $14 billion crypto pyramid scheme from Thailand.
The suspect named Zhang allegedly masterminded a massive pyramid scheme involving cryptocurrency to the tune of $14 billion and became the first financial crime suspect to be extradited using the China-Thailand extradition treaty since it took effect in 1999.
The extradition was announced by the Chinese Ministry of Public Security on its official website giving a breakdown of the development from the time the financial crime was committed to the moment of extradition.
“ On the evening of August 20, with the strong assistance of relevant domestic departments, the Chinese Embassy in Thailand, and Thai law enforcement agencies, the Ministry of Public Security’s “Fox Hunting Operation” working group successfully extradited Zhang, a major economic crime suspect suspected of organizing and leading pyramid selling activities, from Thailand to China. This case is the first economic crime suspect extradited from Thailand by China after the China-Thailand Extradition Treaty came into effect in 1999.”
It is understood that since 2012, the MBI Group, headed by the criminal suspect Zhang, has required participants to pay fees ranging from 700 to 245,000 yuan to obtain platform membership by issuing virtual digital currency, using high rebates as bait, and using the number of members developed and the amount of funds invested as a method of remuneration or rebate basis to carry out illegal online pyramid schemes. The group has developed more than 10 million members, and the funds involved exceed 100 billion yuan.
In November 2020, the Chongqing Municipal Public Security Bureau filed a case against Zhang in accordance with the law; in March 2021, the Interpol China National Central Bureau issued a red notice against him. On July 21, 2022, the Thai police arrested Zhang. Subsequently, China made an extradition request to Thailand in accordance with the bilateral extradition treaty. On May 21 this year, the Thai Court of Appeal made a final ruling to extradite Zhang to China. On August 14, the Thai government made an administrative decision to support the court’s final ruling.
An official from the Ministry of Public Security’s “Operation Fox Hunt” office said that the successful extradition of Zhang demonstrated the Chinese government’s firm determination and will to safeguard citizens’ rights and interests and defend the dignity of the law. It was a major achievement in China-Thailand law enforcement and judicial cooperation and was of milestone significance in consolidating and deepening the law enforcement and judicial cooperation between the two countries. It will also play a positive exemplary role in the future extradition cooperation between China and other countries.” Chinese Ministry of Public Security stated
In 2021, China banned crypto trading activities on the mainland but many investors still found their way around the rules.
The Chinese authorities have been very strict with crypto entities fleshing out stringent policies to tackle crypto entities operating in the country.
What to Know
Recently, China classified crypto transactions as money laundering in an update to its Anti Money Laundering (AML) laws in a bid to simplify the process of prosecuting crypto-linked money laundering cases.
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