MBI Group founder, Zhang Yufa has just been arrested for running a scam scheme (Ponzi). It is known that this company has defrauded tens of thousands of victims, appropriating up to 500 billion yuan.
MBI Group, which specializes in financial investment, has been focusing on electronic gadgets since 2009. After more than 13 years, the police reported that about 400 Chinese people were scammed of 100 million yuan.
Headquartered in Penang, Malaysia, MBI Group (Enbi Love Group) has been selling various cryptocurrency and financial investment plans in the mainland since 2009. The media criticized the profit making method. of MBI Group is a typical Ponzi scheme. By 2017, Malaysian and Chinese police began investigating the company’s business practices.
In 2019, the MBI group founded by Zhang Yufa was suspected of being a financial criminal, and its 91 bank accounts were frozen by Malaysian authorities, totaling 177 million ringgit (about 268.2 million yuan). .
In October 2020, 150 Chinese people in Kuala Lumpur, Malaysia asked the Malaysian government for assistance in recovering more than 100 million yuan of fraudulent assets, they were all victims of the MBI virtual currency fund scam. Soon after, MBI founder Zhang Yufa was said to have evaded the security agency. He even continued to launder 509.17 million yuan in Macau.
On July 22, Zhang Yufa was arrested at MBI Group’s headquarters in Thailand.
According to the plan, Zhang Yufa will be returned to the security agency in China on July 26. But Malaysian police also filed a petition with the Thai government, asking to bring Yufa back to Malaysia to assist in the investigation of related cases.
Fraudulent assets can be up to 500 billion yuan.
The MBI group scandal could be China’s biggest Ponzi scheme. In addition, the investigation can be difficult because the scam network spans many countries. In 2020, Malaysian police only recorded about 150 victims filing lawsuits, most locals did not take legal action because of small money fraud. By 2021, 400 Chinese have filed a class-action civil lawsuit to recover about 151.57 million yuan.
According to testimonies, the number of victims could reach tens of thousands of people. Notably, the amount of assets that MBI scammed is estimated at 500 billion yuan. Several other victims reported that many victims had accumulated debts or broken families. Others died during the lawsuit. To quote one MBI victim as saying:
“We hope that through legal proceedings, MBI founder Zhang Yufa and the group will take legal responsibility and recover the economic damages.”