Cryptocurrency fraudster organized a pyramid scheme for a record $ 14 billion

China has successfully extradited a suspect known as Zhang from Thailand, a man accused of organizing a $ 14 billion cryptocurrency pyramid scheme. Interestingly, this is the first time in history that a suspect in financial crimes has been extradited under the treaty between China and Thailand, which has been in place since 1999.

According to the Chinese Ministry of Public Security, the extradition took place as part of a special operation called «Hunting Fox». The scheme, known as the «MBI Group», dates back to 2012, when Zhang attracted investors to pay membership fees in cryptocurrency that ranged from 700 yuan (USD 98) to 245,000 yuan (USD 34,300). More than 10 million people were involved in the fraudulent scheme, and the volume of transactions exceeded 100 billion yuan (14 billion US dollars).

An investigation into Zhang was launched by the Chongqing police in November 2020, and in March 2021, the Chinese branch of Interpol issued a red notice for his arrest. Zhang was detained in Thailand in July 2022, and in May of this year, a Thai court approved his extradition to China.

Despite the ban on cryptocurrency trading in China since 2021, many investors continue to look for ways around it. In May, Chinese authorities uncovered an underground bank that used USDT stablecoin to exchange foreign currency, with a transaction volume of at least 13.8 billion yuan (1.9 billion USD).