A shop owner on Koh Phangan, where the Full Moon Party is held, was arrested for selling balloons filled with nitrous oxide, or laughing gas.
Police arrested the vendor at his shop on Haad Rin early Thursday morning for selling laughing gas-filled balloons to beachgoers.
Officers found two cylinders of laughing gas and several balloons in his shop.
The vendor, who reportedly confessed to the crime, said that he had profited from the rising price of the gas as authorities intensified their crackdown on the illegal sale of nitrous oxide.
Nitrous oxide gas is used in surgery and dentistry for its anaesthetic effects. Better known as laughing gas, it has long been used by partygoers.