KUALA LUMPUR: The police have arrested 40 individuals and dismantled a syndicate involved in a cryptocurrency investment scam. The losses from this scam have exceeded RM50 million. The operation took place over three days starting on October 29 and the suspects include 31 men, 9 women, and individuals aged between 20 and 55 years old. Among those arrested were business owners, company directors, company secretaries, bank officers, and agents scouting for mule account holders, with a total of 38 being involved in businesses.
This nationwide operation was initiated after the police received 76 reports regarding investment schemes which resulted in total losses of RM50,620,880.29. The victims ranged between 22 and 81 years old, mostly retirees and businessmen. Datuk Seri Ramli Mohamed Yoosuf, the director of Bukit Aman Commercial Crime Investigation Department, held a special media conference on Friday, November 3, to address the situation.
The modus operandi of the syndicate involved offering cryptocurrency investments with attractive returns in a short time frame. Investors were provided with access to monitor the cryptocurrency transaction activities in their registered accounts, but they were unable to withdraw their invested money. By conducting this operation, the police also discovered a new trend utilized by the syndicate, which involved using registered companies and businesses as mule accounts to facilitate their fraudulent activities.
The authorities have identified 73 bank accounts linked to the syndicate, which involve 51 companies. It is believed that these companies and businesses were registered solely to carry out the scam. Additionally, the syndicate would approach individuals facing financial difficulties or even homeless individuals and use their names to set up companies and open company accounts. In return, these individuals would receive either a one-off payment or monthly compensation.
The investigation is being conducted under Section 420 of the Penal Code for cheating, as stated by Ramli. Bernama reported these developments….
