On October 17, more than 100 Chinese nationals had approached the China embassy in Malaysia to complain of being “cheated” through a Malaysian online pyramid scheme, demanding that the company, MBI Group International, return their money. There were about 200 Chinese nationals who have come to Malaysia because of the MBI case.
Local media reported that between 100 and 300 mainlanders from different provinces had gathered outside the embassy. The protesters demanded Malaysian authorities assist in investigations and allow them to meet the relevant parties to settle the dispute. The embassy said it had attempted to help by recommending Malaysia-based lawyers and holding legal consultation sessions. It urged Malaysian police to pay greater attention to the case and launch investigations as soon as possible.
A local Chinese-language newspaper said a demonstrator claimed “three million Chinese nationals” were victims of the scam, and that the protesters would make full use of their 15-day tourist visa to seek justice.
Another protester told China Press, a popular Chinese-language daily, that his “whole village has come to Malaysia in hopes of the founder showing up”.
Last year MBI founder Teddy Teow Wooi Huat, MBI International and its subsidiary Mface International were charged in court with various offences including issuing electronic payments unrecognised by Malaysia’s central bank, promoting pyramid schemes, and involvement in money laundering.
This came a year after MBI was red-flagged by the central bank, the Ministry of Domestic Trade and Consumer Affairs and enforcement agencies for setting up pyramid schemes under the guise of investments, some involving unlicensed virtual currency.
Under these schemes, investors could purchase MBI’s cryptocurrency with real money and a year later spend it at MBI-linked establishments, including a shopping centre called M Mall in the Malaysian state of Penang that was reportedly popular among Chinese tourists.