Thailand extradites Malaysian businessman to China in $14B fraud case

Thai authorities extradited a Malaysian businessman to China on fraud charges worth nearly U.S. $14 billion that were tied to an alleged crypto-currency pyramid scheme, the Chinese government and a Malaysian official confirmed Monday.

Teow Wooi Huat (also known as Teddy Teow and Zhang Moumou) was handed over to Chinese authorities for extradition on Aug. 20, China’s Ministry of Public Security said. Thai officials did not confirm the information.

Teow, who had been arrested in July 2022 in Songkhla – a southern Thai province along the Malaysia border – was accused of operating a pyramid scheme that had defrauded numerous Chinese and Malaysian nationals. 

He was the first financial crime suspect extradited from Thailand to China under their bilateral treaty in 1999, according to the Chinese ministry.

“On the evening of August 20, with the strong assistance of relevant domestic departments, the Chinese Embassy in Thailand and Thai law enforcement agencies, the Ministry of Public Security’s ‘Fox Hunt Operation’ working group successfully extradited [Teow], a major financial crime figure suspected of organizing and leading pyramid selling activities, from Thailand to China,” said an English translation of a news release issued by the ministry.

The ministry called the case a milestone for law enforcement and judicial cooperation between the two countries. 

Thai authorities had earlier said Teow could face five years or more in prison in China if he were extradited and convicted.

A Malaysian government official, speaking on condition of anonymity, confirmed to BenarNews that Teow had been sent to China from Thailand. The official said Kuala Lumpur was only notified after the extradition happened.

Malaysia had also asked for Teow to be extradited following his July 2022 arrest, but Kuala Lumpur lodged its request more than three months after Beijing’s request.

Teow, the founder of MBI International, has been the subject of an Interpol Red Notice since 2020. He was accused of creating a pyramid scheme network and establishing fraudulent companies that had deceived numerous Malaysian and Chinese nationals since 2009, involving over 475 billion baht ($13.9 billion).

In January of last year, the Thai Criminal Court ordered Teow’s extradition to China. His lawyers appealed, but the court rejected the appeal last May.

On Monday, Thai officials did not release any information to confirm the extradition. 

“This matter has never been disclosed, and it’s not my duty to provide information,” said police Maj. Gen. Suraphan Thaiprasert, commander of the Royal Thai Police’s Foreign Affairs Division.

Lt. Gen. Achayon Kraithong, spokesperson for the police, said he had no information about the case.

A legal expert said authorities should provide more information about Teow’s extradition. 

“The lack of straightforward disclosure in this case may be due to the complexities of international relations, the need for operational security, and efforts to avoid public pressure,” said Worachat Awipan, a scholar at the Institute of Religion, Culture, and Peace at Payap University.

“However, this lack of transparency may raise questions about the legitimacy of the process and the government's accountability to the public.”

Muzliza Mustafa in Kuala Lumpur contributed to this report.