Thailand Issues Warrant for Chinese Businessman in Crypto Money Laundering Case; Illegal Mining Involves $28 Million

(Bangkok, 25th)—Thailand's Department of Special Investigation (DSI) has recently issued an arrest warrant for a Chinese businessman, Wang Yicheng, accusing him of participating in a transnational money laundering network and using illegal cryptocurrency mining activities to process illicit funds from scams and online gambling.

According to Reuters, a spokesperson for the DSI said on the 23rd of this month that Wang Yicheng had already been charged with theft and violation of computer crime laws as early as November last year, but it is believed he has already fled Thailand. Authorities are currently working with international law enforcement agencies to pursue him.

The Chinese Ministry of Foreign Affairs responded by stating it was not aware of the case.

Last week, the DSI issued a statement announcing warrants for four Chinese and four Myanmar nationals, but at the time did not disclose their names. Latest information now reveals Wang Yicheng as a key figure in the criminal group.

Investigations indicate that the syndicate laundered money through illegal cryptocurrency mining activities, with the funds believed to have originated from online scams and illegal gambling operations. In recent months, as authorities in Thailand and other Southeast Asian countries have stepped up efforts to combat scam groups led by Chinese nationals, this transnational crime network was further uncovered during investigations into an illegal crypto mining case.

The case reportedly involves the illegal use of electricity worth approximately US$28 million, making it one of the largest illegal crypto mining operations in recent years.

DSI stated that the transnational group profited from illegal mining activities while laundering money and further supporting the development of technology-driven criminal networks.

In addition, authorities revealed that U.S. law enforcement had previously identified Wang Yicheng as being involved in a digital asset fraud case. In June 2023, the U.S. traced stolen funds from a Massachusetts victim to an account registered under Wang Yicheng's name, and subsequently froze and seized approximately $500,000 in crypto assets.

In fact, Reuters had already reported on cases related to Wang Yicheng as early as 2023. According to investigations, during 2021 to 2022, a crypto wallet registered in his name received at least US$9.1 million, and was flagged by blockchain analytics firms such as TRM Labs as being linked to “pig-butchering” investment scam operations.

However, at the time, investigators could not confirm whether Wang Yicheng actually controlled the account, or if his identity had been misused.

A blockchain investigative company pointed out that some of the scams involved are related to the notorious KK Park scam zone along the Thailand-Myanmar border.

Notably, during the case, Wang Yicheng served as Vice President of the Thai-Asian Economic Exchange Chamber of Commerce. This chamber aims to promote economic and trade exchanges between Thailand and China, and maintains close ties with political and business circles in both countries.

After Reuters reported the relevant case in 2023, the chamber stated that Wang Yicheng had resigned from the board, stressed that background checks had revealed no criminal record, and asserted that his personal affairs are unrelated to the chamber.

The chamber also stated that while some Thai officials serve as advisors or associates of the chamber, there are no business or financial interests between them and the chamber or its members.

Meanwhile, Bitmain, a Bitcoin mining machine manufacturer, told Reuters in 2023 that Wang Yicheng was an important client and partner, and that all equipment supplied was through legal transactions.

As of now, neither Bitmain nor the Thai-Asian Economic Exchange Chamber of Commerce have responded to the latest arrest warrant issued by Thai authorities.