24-8-2024 (BEIJING) In a groundbreaking development for international law enforcement cooperation, Malaysian national Tedy Teow has become the first individual to be extradited from Thailand to China under a long-standing treaty, facing accusations of orchestrating a massive cryptocurrency scam.
Teow, also known as Zhang Yufa, is alleged to have defrauded over 10 million investors, predominantly Chinese nationals, of more than 100 billion yuan (approximately S$18.2 billion) through his business conglomerate, MBI Group. The case marks a significant milestone in the application of China’s stringent economic crime laws.
The Chinese Ministry of Public Security hailed the extradition as a “major achievement” and a “landmark” in strengthening judicial cooperation between China and Thailand. The extradition, which took place on Tuesday, is the first of its kind since the two nations established their extradition treaty in 1999.
Teow, the founder of MBI Group, is accused of running a sophisticated pyramid scheme that enticed investors to purchase unauthorised and unrecognised cryptocurrency. The alleged fraudulent activities are believed to have commenced in 2012, ensnaring millions of unsuspecting individuals over the course of a decade.
The case gained international attention when authorities in Chongqing, southwestern China, initiated an investigation into Teow’s activities in late 2020. Subsequently, Interpol issued a global wanted notice for the businessman, leading to his arrest by Thai police in July 2022 after he fled Malaysia.
China’s request for Teow’s extradition, submitted to Bangkok, was granted priority over a similar appeal from Malaysia, where he is also wanted on fraud charges. A Thai court ruled in favour of the extradition in May, a decision later endorsed by the Thai government.
The MBI Group, which purports to have “diversified interests in resources and management developments”, first came under scrutiny in October 2019 when approximately 100 Chinese nationals staged a protest outside the Chinese embassy in Malaysia, claiming to have lost their life savings to the firm.
Chinese authorities have described Teow’s case as “extraordinary” and anticipate that this successful extradition will serve as a “positive example” for future international cooperation in combating economic crimes.
The extradition and subsequent trial of Teow in China are expected to have far-reaching implications for cross-border financial crimes, particularly those involving cryptocurrency. As digital currencies continue to gain prominence in the global financial landscape, this case underscores the growing need for international collaboration in addressing related fraudulent activities.
Legal experts and financial analysts will be closely monitoring the proceedings, as the outcome could potentially influence future extradition requests and the prosecution of international economic crimes. The case also highlights the increasing scrutiny of cryptocurrency-related businesses and the potential risks faced by investors in this rapidly evolving sector.
