China Extradites Major Crypto Pyramid Scheme Operator from Thailand in Historic First

China’s Ministry of Public Security has successfully extradited Zhang Moumou, the alleged mastermind behind a massive $14 billion cryptocurrency pyramid scheme, from Thailand to China. This landmark case represents the first financial criminal extradition under the 1999 China-Thailand extradition treaty.

Joint “Hunting Fox” Operation Yields Results

The extradition resulted from a coordinated effort between Chinese and Thai authorities through a specialized taskforce codenamed “Hunting Fox.” According to official statements, Zhang headed the notorious MBI Group, which orchestrated a sophisticated online pyramid scheme that specifically targeted cryptocurrency investors. The operation’s criminal strategy involved issuing digital currencies and promising unsustainable high-yield returns to victims.

Massive Financial Fraud Operation Uncovered

Authorities have revealed the staggering scale of the MBI Group’s illegal activities. The criminal organization implemented a structured investment program requiring entry fees ranging from 700 yuan ($98) to 245,000 yuan ($34,316). Through this elaborate scheme, the group managed to victimize more than 10 million individuals, with misappropriated funds totaling an estimated 100 billion yuan (approximately $14 billion).

International Pursuit and Legal Proceedings

The extradition follows a comprehensive international law enforcement effort. In November 2020, the Chongqing Municipal Public Security Bureau formally filed a case against Zhang after uncovering the extensive financial crimes. By March 2021, the Interpol China National Bureau had issued a red notice for Zhang’s arrest, marking him as one of China’s most wanted financial criminals.

Thai police successfully apprehended Zhang in July 2022. Following nearly two years of legal proceedings, Thailand’s courts approved his extradition to China in May 2024, paving the way for this historic transfer under the bilateral extradition treaty.

Regulatory Context of Crypto in China

The case highlights China’s ongoing strict stance against cryptocurrency-related financial crimes. Chinese authorities banned cryptocurrency trading in 2021, citing the proliferation of fraudulent schemes like the one operated by MBI Group. While the country maintains its prohibition on trading Bitcoin and other cryptocurrencies, Chinese law does recognize crypto as virtual property, allowing citizens to legally hold digital assets.

Recent Anti-Money Laundering Developments

In a recent update to its Anti-Money Laundering (AML) framework, Chinese regulators have specifically identified virtual asset transactions as a potential method for money laundering. This regulatory classification reinforces that despite occasional market rumors suggesting policy relaxation, cryptocurrency trading remains illegal within China’s borders.