Blockchain analyst ZachXBT traced fraudulent fund transfers across multiple networks, exposing one of 2023’s largest DeFi frauds
Thai authorities arrested a Chinese national in Bangkok concerning a cryptocurrency Ponzi scheme that defrauded nearly 100 investors of over $31 million.
The arrest marks a significant development in a case that became one of 2023’s largest decentralized finance exit scams.
On Wednesday, Liang Ai-Bing, one of five suspects behind the FINTOCH platform, was apprehended at an upscale residence in the Wang Thonglang district following joint intelligence efforts between Thai and Chinese law enforcement.
The FINTOCH platform operated between December 2022 and May 2023, presenting itself as a legitimate decentralized finance investment opportunity. Operating under the brand “Morgan DF Fintoch,” the scheme falsely claimed affiliation with investment banking giant Morgan Stanley.
Morgan Stanley publicly denied any association in 2023. The operation featured a fictional chief executive named Bob Lambert, whose profile photograph was actually that of actor Mike Provenzano.
Investigators identified the fraud as a five-person operation. Chinese authorities named the other alleged members Ai Qing-Hua, Wu Jiang-Yan, Tang Zhen-Que, and Zuo Lai-Jun. Zuo was arrested in China and released on bail, while the remaining suspects fled. The platform promised investors daily returns of 1%, despite a warning from Singapore’s Monetary Authority in early May 2023.
On-chain investigator ZachXBT was crucial in exposing the fraud in May 2023, identifying suspicious fund movements across multiple blockchain networks. The analyst’s findings revealed that the FINTOCH team withdrew $31.6 million in USDT from Binance Smart Chain, bridging funds to various addresses on Tron and Ethereum networks before victims reported being unable to withdraw their investments.
Bug bounty platform Immunefi reported that the FINTOCH incident contributed to a 63% increase in cryptocurrency losses during Q2 2023 compared to the same period in 2022.
The arrest operation involved a Criminal Court-issued search warrant at Liang’s residence, where he had lived alone since late last year. Officers discovered an illegal firearm during the raid, leading to additional charges of unlawful entry into Thailand and illicit weapon possession. Liang had been paying approximately $4,645 monthly to rent the three-story property.
The FINTOCH case exemplifies complex jurisdictional challenges in pursuing cryptocurrency fraud. International cooperation between Thai and Chinese police proved essential in locating Liang, who had evaded detection for months by relocating across borders. Thai authorities are coordinating with Chinese counterparts to arrange his extradition for fraud charges.
This incident reflects broader trends in cryptocurrency-related crime. Earlier in October, US authorities announced they were seeking forfeiture of 127,271 BTC, valued at over $14.2 billion, from Chen Zhi, founder of Cambodia-based Prince Holding Group, in a case involving pig butchering scams where trafficked individuals operated fraudulent schemes under threat of violence.
The case raises questions about regulatory frameworks for decentralized finance platforms (DeFi platforms). Unlike traditional financial institutions, DeFi platforms often operate across multiple jurisdictions simultaneously, making effective oversight difficult.
Industry observers note that while blockchain transparency enables investigators to trace fund movements, the speed at which fraudulent operations launch and execute exit strategies remains a persistent challenge. The months-long gap between the May 2023 exit scam and October 2025 arrest illustrates the significant time and resources required to pursue such cases internationally.
