Thailand’s $40M Bitcoin Fraud Case; Scam That Shook the Crypto Community
A 22-year-old Finnish cryptocurrency trader lost 5,564 bitcoins worth $40 million in one of Thailand‘s biggest crypto scams. Aarni Otava Saarimaa transferred his digital assets to scammers between January and February 2018. The perpetrators promised lucrative investment opportunities in various ventures, including a Macau casino.
The fraudsters showcased lavish lifestyles and presented forged documents to gain Saarimaa’s trust. They pitched ownership stakes in a fictitious cryptocurrency called Dragon Coin allegedly tied to gambling revenue. However, Saarimaa never received any returns on his investment or proof of actual business operations.
Celebrity Connection
Well-known Thai actor Jiratpisit “Boom” Jaravijit emerged as one of the public faces of the operation. His celebrity status added a veneer of legitimacy to the fraudulent scheme. The actor allegedly received approximately 700 million baht (around $22 million) from the scammed funds.
His sister, Supitcha Jaravijit, reportedly orchestrated the money laundering process. She managed various bank accounts that received the converted cryptocurrency. Additionally, businessman Prasit Srisuwan and Chalermpol “Ake” Sriprapai played key roles in the network.
Sophisticated Money Trail
After gaining control of Saarimaa’s Bitcoin, the group immediately began laundering the digital currency. They converted the Bitcoin to Thai baht through BX Thailand, the country’s largest cryptocurrency exchange at that time.
Following this, they transferred the funds to personal bank accounts across their network. The money was then used to purchase several properties, including luxury condominiums in Bangkok‘s upscale Sukhumvit area. This complex money trail made recovery efforts extremely difficult for authorities.
Saarimaa filed a complaint with Thailand’s Crime Suppression Division in June 2018 after communication with the group ceased. Investigators traced the Bitcoin transactions through BX Thailand’s customer records, which linked the digital wallets to the suspects.
By August 2018, authorities had issued arrest warrants for seven individuals involved in the scheme. Police arrested Jiratpisit on August 14 at his Bangkok residence. Despite denying his role as the mastermind, evidence showed significant funds flowing to his accounts.
Moreover, the group’s elder brother, Prinya Jaravijit, fled to the United States following the initial arrests. Authorities eventually revoked his passport, making his stay in America illegal. He was later detained at Bangkok’s Suvarnabhumi Airport upon returning from South Korea.
Surprising Settlement
In an unexpected development, Saarimaa reportedly withdrew complaints against some suspects in October 2018. This followed a private settlement with certain members of the fraud ring. Thai media speculated that he recovered between 10 and 20% of his stolen funds.
The actor Jiratpisit secured release on bail for 500,000 baht (approximately $15,000) and maintained his innocence throughout the proceedings. Meanwhile, the Thai Money Laundering Office confiscated funds worth $6.4 million from the Jaravijit family and other connected individuals.
Regulatory Reforms Follow Major Fraud Case
BX Thailand cooperated with authorities during the investigation but shut down operations in September 2019. The exchange cited increasing regulatory pressures following this high-profile case. Nonetheless, they were never directly implicated in the fraudulent activities.
Furthermore, this case prompted Thailand’s Securities and Exchange Commission to implement stricter regulations. They introduced the 2018 Digital Asset Business Decree requiring enhanced customer verification and anti-money laundering measures.
Aftermath Thai 2018 Scam
The scam revealed significant vulnerabilities in Thailand’s early cryptocurrency ecosystem. These included inadequate oversight, unregulated exchanges, and minimal investor protections. Although massive by 2018 standards, this $40 million fraud seems modest compared to recent crypto heists.
Nevertheless, the case serves as a cautionary tale about investment schemes promising extraordinary returns. Had Saarimaa held his Bitcoin until the 2024 market peak, their value would have exceeded $606 million. Instead, this incident became a landmark case, highlighting the need for vigilance in cryptocurrency investments.
