A Malaysian businessman accused of orchestrating a massive fraud syndicate has been extradited from Thailand to China in a case involving more than 100 billion yuan (approximately $14 billion). Tedy Teow, the founder of the MBI Group, is the first individual in an economic crime case to be handed over to China under the extradition treaty between the two countries, which has been in effect since 1999.
The Chinese Ministry of Public Security announced on Friday that Teow, whose full name is Zhang Yufa, was transferred to China on Tuesday. This marks a significant milestone in enhancing judicial and law enforcement collaboration between China and Thailand. The ministry hailed the extradition as a “major achievement,” underscoring the strengthening of bilateral cooperation in tackling cross-border crime.
Teow, also known as Tedy Teow Wooi Huat, is suspected of running a pyramid scheme that defrauded millions of investors, primarily Chinese nationals. The scheme allegedly involved the sale of unlicensed and unrecognized cryptocurrency by Teow’s company, MBI Group. Since its inception in 2012, more than 10 million investors are believed to have been defrauded, with losses amounting to over 100 billion yuan.
The investigation, which began in Chongqing, China, in late 2020, led to Teow being placed on the International Criminal Police Organisation’s (Interpol) most-wanted list. In July 2022, Thai authorities arrested Teow after he fled Malaysia. China subsequently requested his extradition, and after legal proceedings, the Thai government approved his transfer in May.
In addition to the Chinese authorities’ request, Malaysia also sought Teow’s deportation, as he is wanted for fraud in the country. However, China’s extradition request was prioritized.
MBI Group, which claims to have diversified interests in various sectors, garnered attention in 2019 when about 100 Chinese nationals demonstrated outside the Chinese Embassy in Malaysia, claiming they had lost their life savings to the firm.
The Chinese government has praised the extradition as an “extraordinary” event and hopes it will serve as a positive example for future cooperation in international criminal cases.
At the recent Lancang-Mekong Cooperation (LMC) forum in Chiang Mai, China’s Foreign Minister Wang Yi emphasized the need for enhanced transnational cooperation in fighting crimes like online gambling and telecom fraud. Wang reported that joint operations across the region had led to the arrest of over 50,000 suspects in gambling and fraud cases over the past year.
The foreign ministers of the six countries under the LMC, which includes Thailand, Laos, Myanmar, Cambodia, Vietnam, and China, issued a joint statement calling for greater cooperation to combat transnational crimes, particularly those involving online fraud and gambling. The statement underscored the need for better information-sharing and strengthened border controls to address the growing threats posed by these crimes.
