Chinese authorities have dismantled a vast criminal network led by a Myanmar-based gang boss, responsible for defrauding victims of over $150 million and operating with extreme violence, including murder and torture.
The Ministry of Public Security announced the operation, targeting Xu Faqi, also known as Xu Laofa, a prominent leader of the Kokang gang in northern Myanmar. His organization is implicated in more than 3,400 cases of telephone and online fraud.
Beyond financial crimes, the syndicate is accused of assault, illegal detention, and extortion, affecting a multitude of Chinese citizens.
Xu Faqi’s group established 14 fraud bases across Kokang, employing an armed force of approximately 400 individuals to guard these sites and coerce workers. Locations used as fraud hubs included the Tianzi Hotel, Dongcheng Industrial Zone, Baobaozhai, and Building No. 311.
Individuals failing to meet the organization’s targets faced severe consequences, including assault, torture, or even death. Chinese investigators uncovered evidence linking the gang to at least one murder, one case of severe injury, and dozens of illegal detention and extortion incidents.
The large-scale investigation, which began in September 2023, was led by police in Chongqing. Public arrest warrants were issued for Xu Faqi and his associates in December 2023.
Myanmar police apprehended Xu Faqi on January 30, 2024, subsequently transferring him to Chinese custody under the framework of bilateral security cooperation.
The operation involved more than 300 Chinese officers from Chongqing, who conducted investigations across 18 Chinese provinces and cities, including Fujian, Guizhou, Gansu, and Yunnan. They collaborated with Myanmar authorities, even in areas experiencing armed conflict.
Xu Faqi founded the criminal organization in Kokang in 2019, leveraging his local influence to establish a sophisticated network of call centers designed to defraud people in China.
The Chongqing No. 5 Intermediate People’s Court is scheduled to hold public hearings for Xu Faqi and his associates between September 17 and 19, 2025. The court is currently in the process of determining sentences for all suspects and gang members.