Businessman Suspected of Involvement in MBI Ponzi Scheme Arrested

A 53-year-old businessman suspected of involvement in the Mobility Beyond Imagination (MBI) Ponzi scheme was arrested at a lock-up in Jinjang here, marking the third high-profile arrest linked to the RM3.5 billion scandal.

The suspect, the second person to bear a “Tan Sri” honorific title, was apprehended in Penang at about 2am today, as reported by New Straits Times.

Commercial Crime Investigation Department acting director Datuk Muhammed Hasbullah Ali confirmed the arrest and mentioned that investigations are ongoing.

The 53-year-old is believed to have acted as a proxy for the scheme’s mastermind, assisting in laundering illicit proceeds.

“The man had just returned to Malaysia,” an unnamed source familiar with the investigation told the newspaper, adding that police will seek a remand order against him.

The arrest is part of “Op Northern Star,” an operation launched on April 18 to target individuals involved in the MBI scheme.

Earlier phases of the operation saw the arrest of five people, including another “Tan Sri” and a “Datuk Seri,” for their alleged roles in the fraudulent activities.

To date, authorities have seized and frozen assets worth RM3.51 billion, encompassing a hotel, durian farms, luxury vehicles, watches, and bank accounts.

The MBI Group International, founded by Malaysian businessman Tedy Teow Wooi Huat, operated a pyramid scheme disguised as a digital coin trading platform called MFC, promoting a virtual currency known as M-Coin.

Launched in Penang in 2012, the scheme expanded to China, Taiwan, Japan, and New Zealand.

By 2017, Malaysian authorities, led by Bank Negara Malaysia, raided MBI’s offices, leading to the freezing of hundreds of bank accounts.

The following year, the scheme collapsed, leaving thousands of investors with significant losses.

Teow, often referred to as “Jho Low 2” due to similarities with the 1MDB scandal figure, was extradited from Thailand to China in August 2024.

He is accused of defrauding over 10 million investors across Asia, with Chinese authorities estimating losses exceeding 100 billion yuan (approximately RM65 billion).