Zhang Moumou, the mastermind behind a massive crypto pyramid scheme, has been extradited from Thailand to China following an extensive international manhunt. This marks the first successful extradition of an economic crime suspect from Thailand under the China-Thailand Extradition Treaty, signed in 1999, according to a report from Chinese media outlet The Paper.
The Rise and Fall of the MBI Group
Since 2012, Zhang had led the MBI Group, a criminal organization that orchestrated a sophisticated online pyramid scheme. The group enticed victims by issuing virtual digital currencies and promising high returns on their investments. To join the platform, participants were required to pay fees ranging from 700 to 245,000 yuan ($98 to $34,316), with their earnings dependent on recruiting new members and the amount of money they invested.
Over time, the scheme ensnared more than 10 million people, with total funds involved exceeding 100 billion yuan ($14 billion). The vast scale and complexity of the MBI Group’s operations made Zhang one of China’s most wanted economic crime suspects.
The International Pursuit and Extradition
In November 2020, the Chongqing Municipal Public Security Bureau officially filed charges against Zhang, and by March 2021, Interpol’s China National Central Bureau had issued a red notice for his arrest. Thai police apprehended Zhang on July 21, 2022, marking a critical breakthrough in the case.
The extradition process, however, was lengthy and complex. China formally requested Zhang’s extradition under the bilateral treaty with Thailand. After months of legal proceedings, the Thai Court of Appeal ruled in favor of extradition on May 21, 2024. The Thai government confirmed the decision on August 14, leading to Zhang’s return to China shortly thereafter.
This operation was a coordinated effort between China’s Ministry of Public Security, the Chinese Embassy in Thailand, and Thai law enforcement agencies, all working under the framework of China’s “Fox Hunting Operation,” which targets economic fugitives abroad.
Ongoing Risks in China’s Crypto Landscape
Despite China’s strict ban on cryptocurrency transactions since 2021, the population remains vulnerable to crypto investment scams. While cryptocurrency transactions are restricted, Chinese authorities recognize crypto as virtual property, offering legal protection for investors to hold digital assets.
Illicit Crypto Activities in 2024: A Mixed Picture
A recent report by Chainalysis indicated a decline in overall illicit cryptocurrency transactions in 2024, even as certain criminal activities within the sector surged. The report, part of a mid-year update on crypto crime, highlighted a rise in hacking and ransomware attacks. By the end of July, the cumulative value of stolen cryptocurrencies had reached $1.58 billion, an 84% increase compared to the same period in 2023.
Although the number of hacking incidents increased only slightly, the average value stolen per hack saw a significant rise. July alone saw hackers steal approximately $266 million through 16 separate breaches, dealing substantial losses to the crypto sector. Notably, the July 18 attack on Indian crypto exchange WazirX accounted for over $230 million, or 86.4%, of the month’s total losses.
Zhang’s extradition is a significant victory in China’s ongoing battle against crypto-related crimes, but the evolving landscape of illicit activities continues to pose challenges for authorities worldwide.
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