Recently, I came across another infuriating scam, and I really need to talk about it.

A Chinese Malaysian has been running multi-level marketing schemes under various names for over ten years, ultimately defrauding 500 billion RMB, with over 2 million victims. Can you imagine how ruthless that is?

This guy is named Zhang Yufa, originally from Guangdong. He was initially unknown, until the 2008 financial crisis when he suddenly opened a Hongdao Café. On the surface, he sold coffee, but in reality, it was a Ponzi scheme—pay 6,000 ringgit to buy original shares, and you’d get coffee coupons and rebates monthly, with a five-year tripling of value. Sounds tempting, right? Within a few months, he attracted over 3,000 shareholders, pulling in tens of millions. But the café’s service was terrible, and it quickly collapsed. The shareholders only then realized they’d been scammed. Zhang Yufa was only in jail for a day before being released.

Having tasted success, he immediately launched the “Dream Group” in 2009, claiming a steady 70%–90% return with no risk. Still the same old tricks—hierarchical levels, virtual currency, recruiting downlines. This time, he raised over a billion yuan before being exposed in 2013 when his partners were arrested. But Zhang Yufa had already run away, heading to Hong Kong to “learn” from a multi-level marketing company called SMI.

In 2015, Bitcoin exploded in popularity. Zhang Yufa combined his previous experience and upgraded his scheme, founding the MBI Group. This time, he played even dirtier—issuing a virtual currency called “Yiwubi,” claiming it “only rises and never falls.” Users had to pay at least 700 yuan to join, and based on their investment, they’d be assigned star levels, with annual returns ranging from 10% to 200%. They could also develop downlines to earn rewards. MBI even opened physical stores where people could shop and stay using m-coins, making it look legitimate and regulated.

But that’s just the routine. There are no real products; the company itself doesn’t profit. It relies on new funds to keep operating. Accounts show gains, but when users try to withdraw, they’re given various excuses and delays—only a maximum of 10,000 yuan per day. When someone questions this, die-hard fans jump in to defend him, calling Zhang Yufa “Daddy Zhang” and treating him like a patriarch.

In mid-2017, a joint crackdown by Malaysia and China led to Zhang Yufa’s arrest, with over 90 accounts frozen containing 209 million yuan. But this guy has strong connections, and he was quickly released. MBI continued to raise money, disguising itself as a blockchain project and issuing a new virtual currency called WCG.

By 2019, MBI completely collapsed, and the headquarters went silent. Over 2 million victims cried out for help, and some even tried to kidnap Zhang Yufa’s son to force him to repay. And what did he do? He quietly fled to Thailand and became a monk in a temple, claiming it was for “self-cultivation.” Even more absurd, he said this ordination was only temporary—seven days. Crossing borders to become a monk for seven days—who would believe that?

In Thailand, he didn’t rest. He bought off officials, bought land and streets, and continued to make money and enjoy life. It wasn’t until July 2022, when police from China, Malaysia, and Thailand coordinated operations, that he was finally arrested in Thailand. By the end of July, he was officially extradited to China for trial.

Honestly, this entire case is a history of scam evolution. From physical café frauds to virtual MLM schemes, and then to m-coin scams—methods becoming more covert and scale growing larger. But the core never changes—no real products, promises of sky-high returns, entrance fees, and maintaining the scheme through downline funds.

What’s most tragic is that Ponzi schemes like this have always existed. As long as greed remains in human nature, there will always be people who believe they are the chosen ones, struck by falling pies from the sky. Little do they realize, what falls from the sky isn’t a pie, but a trap.

Zhang Yufa has fallen, but the next one is probably lurking somewhere, ready to strike again.