Thai Crypto Crackdown: Chinese National Nabbed in $14M Ponzi Scheme That Promised Moon Returns
Another day, another crypto scam—but this one's got international flair and enough audacity to make even seasoned Wall Street sharks blush.
The Setup: Too-Good-To-Be-True Returns
Promising investors the moon and delivering crater-sized losses instead. Sound familiar? The scheme dangled impossible returns—the kind that make traditional finance's paltry 2% APY look almost respectable.
The Takedown: Thai Authorities Strike
Bangkok's cyber police didn't need blockchain forensics to spot this old-school con dressed in crypto clothing. They tracked the digital breadcrumbs straight to a Chinese national now facing the music.
The Aftermath: $14M Lesson in Due Diligence
Fourteen million dollars vanished—poof—into the digital ether. Proving once again that when something promises hedge fund returns with savings account risk, it's probably neither.
Just another reminder that in crypto, if you don't know where the yield's coming from—you might be the yield.
Operation And Arrest
Reports have disclosed that Liang and four other suspects set up a platform called FINTOCH between December 2022 and May 2023.
Authorities say the group used mobile apps to attract money from investors. Names linked to the case include Al Qing-Hua, Wu Jiang-Yan, Tang Zhen-Que and Zuo Lai-Jun.
Based on reports, all five reportedly left the country except Zuo, who was arrested earlier and later released on bail pending trial. At the Bangkok residence, police noted a high monthly rent of 150,000 baht, which is about $4,645.
Crypto Scam: Cross Border Cooperation
Thai and Chinese officials shared intelligence that led to the arrest. Legal steps beyond the detention were not detailed in initial accounts, and it is still unclear whether extradition or formal charges will be filed in either country.
Some details remain missing, such as how many people invested, the exact methods used to promise and pay returns, and whether any of the money has been tracked or frozen so far. The presence of a firearm at the property may lead to additional legal counts being considered.
Authorities say the platform operated for roughly six months. How victims were recruited has not been confirmed. Reports have disclosed only the broad outline: an app-based scheme that promised returns and took in more than 100 million yuan.
Investigators typically need to trace transfers, exchange records and crypto wallets to find out how much is recoverable. That work can take months, especially when funds cross borders and MOVE through multiple accounts or currencies.
When arrests happen, they do not always mean victims get their money back. Recovering assets requires frozen accounts, cooperation from exchanges, and court orders in several countries.
Featured image from Unsplash, chart from TradingView
