Thai Authorities Arrest Chinese Suspect in Cryptocurrency Ponzi Scheme
In a significant law enforcement development, Thai authorities have apprehended a Chinese suspect linked to a purported multimillion-dollar cryptocurrency Ponzi scheme, said to have targeted nearly a hundred individuals in China. Liang Ai-Bing was taken into custody following a police operation that involved a raid on an upscale residence located in Bangkok’s Wang Thonglang district.
According to reports, Liang had been living alone in the property, which he rented for approximately $4,645 a month, since the latter part of 2022. His arrest was sparked by cooperation between Thai and Chinese law enforcement agencies, leading to the issuance of a search warrant by a local Criminal Court.
Details of the Fraudulent Scheme
Reports indicate that Liang was implicated in a five-member team responsible for promoting a deceitful decentralized finance platform called “FINTOCH” over a period from December 2022 until May 2023. This fake platform reportedly deceived investors claiming affiliations with prominent financial institutions like Morgan Stanley. The investment bank publicly distanced itself from FINTOCH in 2023, indicating no ties to the fraudulent operation.
A fictitious CEO named “Bob Lambert” was utilized in promotion, whose image was sourced from actor Mike Provenzano, known for appearances in short films.
The operation is believed to have scammed over $31 million in user funds before the platform’s collapse, with on-chain investigator ZachXBT highlighting a sudden exit scam that moved funds amounting to 31.6 million USDT across various blockchain platforms, resulting in numerous reports from investors unable to recover their money. In addition, the Monetary Authority of Singapore had previously issued warnings about the platform in May 2023, highlighting its dubious nature.
Legal Proceedings and Broader Implications
In relation to this case, Chinese authorities have identified several other individuals allegedly involved in the scheme, including Al Qing-Hua, Wu Jiang-Yan, Tang Zhen-Que, and Zuo Lai-Jun, the latter of whom was arrested in China but released on bail. The remaining individuals are reported to have fled.
Liang, facing charges for illegal firearm possession and unlawful entry, is expected to be extradited to China for further legal proceedings.
The FINTOCH case is indicative of larger trends in fraudulent cryptocurrency operations that have affected victims globally. Recent investigations in the U.S. revealed efforts to confiscate 127,271 BTC, valued at over $14.2 billion, from the founder of the Prince Holding Group, highlighting the pervasive issue of crypto scams, including the dangerous “pig butchering” schemes which have exploited vulnerable individuals under duress.
