Russian arrested on Koh Phangan for illegal motorcycle and car rentals, seizing tourists’ passports, and selling psilocybin mushrooms and cannabis vapes, prompting authorities to launch a nationwide crackdown on foreign-operated illegal businesses targeting visitors.
Tourist police on Koh Phangan on Sunday arrested a 37-year-old Russian for running an illegal motorcycle and car rental business. Officers caught Mr. Mikhail in sting transactions, proving the operation was unlawful. To make matters worse, they found Category 5 narcotics on the premises—dried psilocybin mushrooms in his hut. He was also dealing illegal cannabis vapes imported into Thailand. Police stressed the ongoing crackdown aims to protect tourists from exploitation by illegal operators.
Thai police have arrested a Russian national accused of running an illegal motorcycle rental business targeting foreign tourists. Authorities said the suspect, 37-year-old Mikhail, confiscated passports and demanded excessive fees for minor vehicle damage. Consequently, tourists reported feeling trapped and unable to continue their travels.
Following multiple complaints, a joint task force launched a full investigation. The team included Koh Phangan Tourist Police, Surat Thani Immigration Police, Koh Phangan Police Station officers, and local administrative officials. Together, they identified Mikhail as the operator behind the illegal scheme.
On Sunday evening, October 19, 2025, officers moved to arrest him. He was located at a bamboo hut in Ban Maduean Wan along Thong Sala-Chaloklum Road. During the operation, police used marked 2,000-baht bills in a sting. Subsequently, the same bills were recovered from Mikhail’s pants pocket, confirming his involvement.
Police seize vehicles and uncover contraband in illegal rental operation on Koh Phangan targeting tourists
Authorities also seized ten motorcycles and one car linked to the unlicensed rental business. Moreover, police said all vehicles were being rented without proper licensing, putting tourists at serious risk. The total value of the seized vehicles and contraband runs into several million baht.
During a search of Mikhail’s hut, officers discovered illegal narcotics. These included a bag of dried psilocybin mushrooms, classified as Category 5 narcotics. Additionally, police confiscated five cannabis vape devices ready for use. They also found nine boxes of mushroom-infused edibles and eight boxes of mushroom-infused chocolate.
Mikhail reportedly admitted ownership of all seized items. He claimed the drugs were for personal use, although he said he was unaware of their illegal status. Furthermore, he confessed to running the motorcycle rental operation for about two months without any license or authorisation.
Tourists said Mikhail demanded passports as collateral when renting motorcycles. When minor scratches or issues appeared, he imposed excessive compensation and time penalties. Consequently, tourists had little choice but to comply, effectively trapping them and limiting their freedom.
Officers file multiple criminal charges against Russian amid crackdown on unlicensed rental schemes
Authorities at Koh Phangan Police Station have filed four criminal charges against Mikhail. These include operating a business as a foreign national without authorisation and working beyond the permitted scope. Police also charged him with illegal possession of Category 5 narcotics. Additionally, he faces a charge of concealing, selling, disposing of, purchasing, or possessing goods brought into Thailand without proper customs clearance. The cannabis vapes fall under this charge.
Police General Saksira Phueak-am, Commissioner of the Tourist Police Bureau, emphasised the seriousness of the case. He ordered tourist police stations in major destinations and surrounding areas to intensify crackdowns on foreign nationals committing crimes. “We will prosecute every case without exception,” he stated. “Our goal is to restore tourist confidence and protect Thailand’s tourism image.”
Authorities said Koh Phangan remains a major destination for international visitors. Nevertheless, illegal operators continue to exploit tourists’ unfamiliarity with local laws. As a result, swift action and coordinated investigations are essential.
Passport-extortion and illegal rentals highlight the scale of criminal operations threatening Koh Phangan
Police described Mikhail’s passport-extortion scheme as particularly dangerous. Tourists could not leave the island or access their documents until they paid inflated fees. Such tactics violated both Thai law and international norms. Furthermore, these scams could damage Thailand’s tourism reputation if left unchecked.
The seizure of motorcycles, a car, and millions of baht in assets highlights the scale of the operation. Authorities said the confiscated vehicles were rented without business licenses. Moreover, the contraband seized, including psilocybin mushrooms and cannabis vapes, adds a narcotics dimension to the case.
This case is part of a broader nationwide crackdown on foreign nationals operating illicit businesses. Police said heightened vigilance is necessary to prevent similar scams at popular tourist sites. Consequently, other unlicensed rental services are now under investigation.
Authorities confirm suspect remains in custody while agencies coordinate evidence and investigation
Authorities confirmed Mikhail remains in custody pending further investigation and formal prosecution. Meanwhile, all seized items are being held as evidence. Tourists have been advised to verify licenses, secure personal documents, and report suspicious rental operators immediately.
Officials said the operation demonstrates effective coordination among multiple agencies. By combining sting operations, thorough searches, and local intelligence, police were able to dismantle a criminal enterprise quickly. Moreover, the case sends a clear warning to other foreign nationals who might attempt similar schemes.
Tourist police emphasised that prosecutions like this are essential. Without enforcement, illegal rental services could proliferate and cause harm to countless visitors.
Police urge vigilance among tourists while crackdown on foreign-operated businesses continues nationwide
Police also stressed that tourists should remain vigilant when renting vehicles. They encouraged visitors to report operators who demand passports as collateral or impose inflated fees. This is highly improper. By doing so, authorities said, travellers can protect themselves and help law enforcement prevent future scams.
Mikhail’s arrest and the seizure of motorcycles, a car, and narcotics came during a major crackdown on foreign-operated illegal businesses on Koh Phangan still underway. Authorities stated that similar investigations will be extended nationwide to other tourism hotspots to ensure zero tolerance for criminals targeting visitors.
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Sunday’s hard-hitting operation demonstrates Thailand’s commitment to protecting tourists. Police said it also sends a message that criminal activity by brazen foreigners will be prosecuted to the fullest extent of the law. Officials warn of continuous action against unlicensed business operations on Koh Phangan. Police urge tourists and locals to assist by reporting abusers to local police or through hotlines.
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Further reading:
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
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