Thai authorities have arrested Chinese national Liang Ai-Bing in Bangkok for his alleged involvement in a $14 million crypto Ponzi scheme tied to the fraudulent investment platform FINTOCH.
Key Takeaways:
- Thai police arrested Liang Ai-Bing over allegations he operated FINTOCH, a fraudulent crypto investment scheme promising 1% daily returns.
- On-chain investigators traced over $31.6 million in stablecoin movements tied to FINTOCH’s 2023 exit scam.
- Experts stress the importance of using verified crypto wallets and regulated crypto exchanges to protect investors from fraudulent schemes.
According to a local media report, Thai authorities detained Liang Ai-Bing in Bangkok this week in connection with FINTOCH, a collapsed crypto project that defrauded thousands of investors. The platform, which operated under the banner of Morgan DF Fintoch, falsely claimed to have ties with major financial institutions and promised investors daily returns of 1%.
Snapshot of the local news’ content. Source: Khao Sod
Authorities revealed that the project abruptly vanished in May 2023, leaving investors without access to their funds. Subsequent investigations found that FINTOCH had fabricated its leadership and used actors to portray executives in promotional videos. Police sources said Liang’s arrest came after months of coordinated tracking efforts involving international law enforcement and blockchain analytics teams.
Investigators Trace Over $31 Million in Stolen Funds
Blockchain investigator ZachXBT previously revealed that FINTOCH’s disappearance coincided with significant on-chain movements totaling about $31.6 million in USDT. The funds were moved across both the Tron and Ethereum networks in what analysts described as one of the most notable DeFi rug pulls of 2023.
Authorities believe Liang was one of the key operators behind the scheme, which targeted primarily Chinese-speaking investors through social media campaigns and referral programs. Thai police are now working with Interpol and Chinese officials to trace remaining assets and identify potential accomplices involved in the operation.
Ongoing Risks in Crypto Investment Schemes
The FINTOCH case underscores persistent risks in crypto investment platforms that offer guaranteed or fixed daily returns. Such promises are rarely sustainable and often signal fraudulent intent. The platform’s collapse and Liang’s arrest serve as reminders for investors to exercise due diligence, verify company legitimacy, and use secure crypto wallets and regulated platforms.
Experts emphasize that while blockchain transparency aids in tracing illicit activity, cross-border legal enforcement remains complex. Recovering stolen digital assets often requires collaboration between multiple jurisdictions, as in this ongoing Thai investigation.
Outlook
Thai authorities are expected to continue their investigation and collaborate with regional agencies to locate remaining funds and also the other personalities behind the fraud scheme. Further updates could include formal charges against Liang as well as potential restitution efforts for victims. If ever the investigation uncovers related to larger financial networks or exchanges, there might be a huge or noticeable impact on overall market stability.
For the broader market, analysts and experts advise traders and investors to maintain and apply standard investing strategies like diversification and risk management as it serves as protection for such fraud schemes.
Summary
Thai police arrested Liang Ai-Bing in Bangkok over his alleged role in FINTOCH, a $14M crypto Ponzi; on-chain analysis traced about $31.6M in USDT across Tron and Ethereum, and investigators are coordinating internationally to recover assets.
