Thai authorities have arrested a Chinese citizen in Bangkok in connection with a crypto-based pyramid scheme that defrauded investors of over $14 million, according to local media reports. The arrest follows an international investigation led by Chinese law enforcement agencies.
How the Scheme Worked
The suspect allegedly promised high returns on investments in digital assets. Instead of generating legitimate profits, funds from new investors were diverted to wallets controlled by the scheme’s operators. Early investors occasionally received payouts funded by later contributions, creating the illusion of profitability.
Victims included hundreds of individuals from China and other Asian countries, many of whom were lured through an online platform designed to give the scheme a veneer of legitimacy.
Investigation and Arrest
Authorities discovered that the suspect had used a complex network of accounts and crypto wallets to conceal the source and movement of funds. After initial complaints surfaced, he fled China and lived in Thailand under a false identity.
The arrest operation was carried out collaboratively by the Thai Cybercrime Department and Chinese authorities. Police confiscated laptops, mobile phones, and documents linking the suspect to financial transactions. Thai authorities confirmed that extradition proceedings will begin shortly, and Chinese prosecutors intend to charge him with fraud, money laundering, and illegal fundraising.
Global Context
This case mirrors other high-profile crypto frauds worldwide. Earlier, Vietnamese authorities dismantled the largest cryptocurrency scam in the country, based around the Paynet Coin (PAYN) token, arresting 20 individuals including the alleged mastermind, 45-year-old Nguyen Van Ha from Zylai Province. In Brazil, three organizers of a crypto pyramid were sentenced to a combined 171 years in prison.
Investors are reminded to exercise caution when engaging with online investment platforms, particularly in the rapidly evolving world of digital assets, where fraudsters continue to exploit regulatory gaps.
