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News

Monk Disguise Couldn’t Save Zhang Yufa From $500B Ponzi Justice

October 30, 2024 - Around 2 mins mins to read

Key Points:

  • Zhang Yufa was extradited for a massive Ponzi scheme that defrauded 2 million investors⁠.⁠​
  • MBI Group used virtual currency to promise unrealistic investment returns⁠.
Zhang Yufa, mastermind of MBI Group Ponzi scheme, extradited from Thailand to China. Accused of defrauding 2 million Chinese investors of 500 billion yuan.
Monk Disguise Couldn't Save Zhang Yufa From $500B Ponzi Justice

In a massive case of international financial fraud, Zhang Yufa, the mastermind behind the infamous MBI Group Ponzi scheme, was extradited from Thailand to China to face charges for allegedly defrauding 2 million Chinese investors of 500 billion yuan.

Zhang Yufa’s MBI Group Ponzi Scheme Exposed

Monk Disguise Couldn't Save Zhang Yufa From $500B Ponzi Justice

Originally from Malaysia, Zhang began his fraudulent activities with the “Red Island Café” in 2008, luring investors with promises of high returns. Over the years, his tactics grew more sophisticated, ultimately leading to the creation of the MBI Group.

Monk Disguise Couldn't Save Zhang Yufa From $500B Ponzi Justice

Promoted as a legitimate enterprise with investments in various sectors, MBI attracted thousands of investors with its virtual currency, Yiwubi (M Coin), which Zhang claimed would only increase in value. Investors were promised up to 200% returns, coupled with bonuses for recruiting new members, which drove exponential growth in his operation.

Monk Disguise Couldn't Save Zhang Yufa From $500B Ponzi Justice

Read more: ScamSniffer DEX Transaction Fees Now Applied at 0.25% Rate

International Authorities Collaborate on Arrest

The scheme came unwound in 2017 when Chinese and Malaysian officials collaborated to investigate MBI. Zhang, while detained for a few days, continued operating and fled the country to Thailand. In one of his most brazen attempts to evade capture, Zhang spent seven days as a monk in a Thai temple, reportedly as spiritual cover.

Wu Blockchain reported that Zhang’s extradition came after an internationally coordinated effort of Chinese, Malaysian, and Thai authorities made the arrest a serious blow to transnational Ponzi schemes and brought hope to the countless victims who suffered from these severe losses-a sign that it may reach those most elusive fraudsters.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

MBI Coin

MBI Scam

Yiwubi (M Coin)

Yiwubi Coin

Yufa Zhang

Zhang Yufa

Author

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.