Police say scam money bought big stakes in Thai stocks

When scammers take money, most people picture mule accounts, gold or crypto. But the latest case points somewhere else. Thai police say one pot of money left the country and came back as large stakes in Thai listed companies.

On 27 October 2026, economic crime police, the SEC and AMLO, the Anti-Money Laundering Office, held a joint briefing on a network police link to Ben Smith and Yim Leak. There are seven suspects. Six are abroad with arrest warrants out, and the seventh denies the allegations.

Yim Leak denied the charge through a spokesman, and Ben Smith's lawyer declined to comment, AFP reported. All of the allegations still have to be proven in court.

The obvious question is whether the Thai stock market is turning into a laundering route. Nakarin Wanakijpaibul, known as Ken, executive editor of THE STANDARD, wrote on 28 October that confidence must be restored urgently. Asadej Kongsiri, president of the Stock Exchange of Thailand, said in December 2025 that the phrase "laundering hub" may be too extreme.

The money went through Cambodia and Singapore before becoming Thai shares

Police described the route step by step.

Police said the money began with investment fraud against foreigners and call centre gangs. It went into suspects' accounts and mule accounts in Cambodia, passed through Thailand to funds in Singapore, then came back to buy Thai shares under the names of foreign funds.

Picture one pot of money changing hands three or four times. By the time it reaches the share register, all you see is an ordinary looking fund. Put simply, the name on paper is real, but the person who really benefits may be someone else. The law calls that person the ultimate beneficial owner, or UBO.

Three stocks had shares frozen, but the SEC says the companies are not involved

The case touches three stocks many Thais know well.

• VGI: the SEC said three foreign investor groups took 5.9 billion new shares in a private placement worth 8.85 billion baht, shared a funding source, and together held over 25% of the voting rights.
• BCP: Bangchak said the shares frozen since 3 December 2025 belong to one shareholder, its business is unaffected, and that shareholder's representative director has had no authority to bind the company since 11 December 2025.
• MFC: The Nation reported that the freeze applies only to holdings linked to the suspects, and the remaining shares trade as normal.

Why 25% matters: anyone reaching that level must offer to buy all the shares, known as a tender offer, so small shareholders get a chance to sell when control changes. If names are hidden, others cannot see who is coming in, and they lose that chance.

Pornanong Budsaratragoon, secretary-general of the SEC, said the three companies are not involved in the offences. The freeze covers only holdings linked to the suspects, other shareholders can trade as normal, and VGI can keep using the money it raised for its business.

The market still reacted at once. VGI closed at 1.01 baht, down 11.4% on the day of the briefing. An analyst at Krungsri Securities said the price could come under pressure if the frozen shares are sold in future.

The numbers show the size of the case, not the size of the problem

Two sets of figures were given, so we use the lower one.

Kamonsit Wongbutnoi, deputy secretary-general of AMLO, said over 26 billion baht in assets was seized and frozen, including over 16 billion baht in shares. The overall police figure is over 35 billion baht, which also counts yachts, cars, deposits and land.

The 16 billion baht in shares is less than half of one day's trading, which the exchange said averaged about 35 billion baht a day in November 2025. But that figure does not show how much of this money is in the market, and value is not the only issue, because the charges include holding shares to control a business without following the rules.

The exchange has said the news involves only a few of its more than 800 listed companies, and that it reviews 500,000 to 600,000 transactions a day. The SEC said in December 2025 it was tracing the beneficial owners of shares in seven listed companies, and it now says other securities are still under review.

Nakarin pointed to Indonesia to show why this reaches everyone. MSCI, which makes the indexes funds around the world follow, opened a consultation on 15 October on downgrading Indonesia's market over opaque ownership, and Indonesia's index fell as much as 11.4% during trading the next day, according to Reuters.

Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organizations, sees it differently, saying the crackdown is a good signal for confidence and did not put pressure on the index.

The gap is in shares held through foreign service providers

Three things are moving to close it.

• Securities law draft: the SEC took comments from 24 June to 24 July 2026 on making foreign service providers report the beneficial owners of Thai shares. It has no effective date yet.
• Central identity checks: the federation proposes a Central KYC, because someone with 10 brokers and 10 fund managers now has to verify their identity 20 times.
• Customer checks: the SEC said it is tightening how intermediaries check customers, and it is coordinating with foreign regulators.

Nakarin wrote that the next steps must be prosecuting the suspects, tracing assets back to victims and closing the gaps. The piece also said companies should explain how they checked the other side of a deal, because knowing a fund's name is not enough to protect investors.

If you hold these shares or lost money to a scam, watch 3 things

This is not investment advice, but it is worth knowing before you decide.

1. If you lost money: keep your evidence and police report. AMLO plans a Royal Gazette notice on how victims can claim assets, and it says it can protect victims without waiting for a final criminal verdict.
2. If you hold these three stocks: the SEC says trading is normal, but prices may swing. Read each company's statement on the exchange's website before you decide.
3. If you see a big share sale to foreign funds: check whether the company says who is behind the fund and how it checked.

Next to watch are the two asset cases at the Civil Court and AMLO's notice for victims.

FAQ

Is the Thai stock market now a money laundering hub?

There is no such finding. Police accuse one network of using the market to launder money, and that must still be proven in court. The exchange has said the phrase may be too extreme.

Can I still sell VGI, BCP or MFC shares?

The SEC says other shareholders can trade as normal. The freeze applies only to holdings linked to the suspects.

Where do the seized assets go?

AMLO says they go first to compensating victims, with any remainder going to the state. Some of the assets are still before the Civil Court.

Sources

• ThaiPublica: Police and SEC issue arrest warrants for network hiding VGI holdings
• The Nation: Authorities target alleged Ben Smith cross-border money-laundering network
• THE STANDARD: Thai stocks used for laundering, trust must be restored urgently
• THE STANDARD WEALTH: Inside the cross-border laundering route
• AFP via New Straits Times: Thailand targets US$1bil in assets as alleged scam suspects flee
• Thai Post: Arrest warrants for Ben Smith and Yim Leak, over 35 billion baht frozen
• The Nation: Bangchak says business unaffected by December 2025 share freeze
• Thairath: SEC targets beneficial owners, exchange says market is not a laundering hub
• Bangkok Biz News: SEC and FETCO back the crackdown on cross-border grey money
• Bangkok Biz News: Police, SEC and AMLO on the cross-border laundering network
• Bangkok Biz News: Analysts on VGI after the freeze
• Lex Bangkok: Thailand Securities Act amendments