Chinese National Arrested in Thailand Crypto Fraud Crackdown

After a vast sting operation in Thailand, the authorities have taken a Chinese businesswoman into custody for alleged involvement in an extensive crypto scam. The Bangkok Post reported that it took raids on 29 locations to unearth the investment fraud.

Police arrested Chinese national Fengpei Cai on several money laundering and fraud counts.

Elaborate Crypto Fraud Comes to Light in Thailand

The Chief of the Cyber Crime Investigation Bureau (CCIB), Pol Lt Gen Worawat Watnakhonbancha, told the paper that it was an elaborate scam.

Authorities allege that Cai participated in transnational crimes, committed computer system fraud, and laundered money.

During the operation, the police seized assets from multiple sites connected to Cai. The report reveals that among the confiscated items were Rolls-Royce and other luxury vehicles such as Alphard and Mercedes-Benz, and lease agreements amassing a value in millions of dollars.

The police reportedly seized 100 items in total.

According to CCIB Division 3 Commander Pol Maj Gen Sathit Prom-uthai, Cai primarily operated as a real estate agent mostly catered to Chinese clientele. The official explained that Cai, with other conspirators, purportedly deceived individuals into investing in sham cryptocurrency projects.

Clampdown by Thai Regulators

A 24-year-old Myanmar national, Moe Moe Aye, was also arrested for co-conspiracy in fraud, money laundering, and related offenses in the crypto scam. The police reportedly confiscated cash, multiple bank passbooks, and ATM cards from Aye. Notably, her involvement is believed to be tied to a telephonic fraud ring. The fraudsters masqueraded as high-ranking police officials to swindle money from victims.

Preliminary checks into Aye’s financial activities revealed that she had channeled millions in domestic currency through her accounts in 2023.

Recent regulatory moves in Thailand emphasize a cautious approach toward cryptocurrency. The country’s Securities and Exchange Commission (SEC) has ramped up efforts to ensure investor protection. Recently, the country watchdogs mandated all crypto trading platforms for risk-related disclosure due to the inherent volatility of cryptocurrency investments.

Last month, Thailand SEC banned crypto lending services.

Thai regulators started tightening their grip last year. In 2022, there was a notable decline in active crypto trading accounts following the stringent actions by the SEC. They have clear directives against misleading crypto advertisements, emphasizing accurate information and mandatory warnings about the risks of crypto investments.