KUALA LUMPUR – Police have busted a cryptocurrency investment syndicate, involving losses amounting to over RM50 million, with the arrest of 40 individuals.
Bukit Aman Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf said the 31 men and nine women, aged between 20 and 55, were arrested in a three-day nationwide operation from October 29.
He said that of the 40 arrested, 38 were business owners, company directors and company secretaries while the rest included bank officers and agents scouting for mule account holders.
“This operation was conducted after police received 76 reports from victims of investment schemes, which involved losses totalling RM50,620,880.29.
“The victims, aged between 22 and 81, are mostly retirees and businessmen,” he told a special media conference here today.
Ramli said the syndicate’s modus operandi was to offer cryptocurrency investments giving high returns in a short period.
“Investors are given access to monitor the cryptocurrency transaction activities in the accounts that are registered under the investors’ names, but the money cannot be taken out,” he said.
He said that through the operation, police also detected a new trend by the syndicate, which used registered companies and businesses to be used as mule accounts.
“So far, we have traced 73 bank accounts used by the syndicate, involving 51 companies. We believe these companies and businesses were registered simply for carrying out the scam,” he said.
Ramli added that the syndicate would approach individuals facing financial problems or homeless people to use their names for the setting up of companies and then open a company account.
“These individuals will be given a one-off payment or monthly payment. The case is being investigated under Section 420 of the Penal Code for cheating,” he said. – November 3, 2023