Malaysian Businessman Loses Over RM11 Million in Crypto Scam

A 69-year-old businessman from Malaysia (Sarawak) fell victim to a cryptocurrency investment scam after investing over 11 million MYR (approximately 2.5 million USD) in just three months, ultimately losing all his funds.

According to Dato' Seri Naim, Director of the National Commercial Crime Investigation Department, the victim reported the scam to the police on the 17th of this month. The businessman recounted how he was deceived by a supposed cryptocurrency investment scheme he encountered on Facebook.

In April this year, while browsing Facebook, the victim was approached by a stranger who claimed to offer high-return cryptocurrency investment opportunities. The scammer persuaded him to download an app called Coinbase Wallet and to invest through the website us-btce.net.

Under the scammer's persuasion, the victim transferred a total of 10.2 million MYR into the so-called “investment account” from April to June. When he attempted to withdraw his profits, he was informed that an additional fee of $310,000 (approximately 1.35 million MYR) was required.

Despite his doubts, the victim paid the fee in hopes of retrieving his funds. To his shock, after paying the fee, his “investment account” was emptied. Realizing he had been scammed, he promptly reported the incident to the authorities.

Further investigation revealed that the investment platform was operated by an international organization. On 31st January 2024, U.S. authorities charged the operators of the BTC-e platform with money laundering.

In a related development, Malaysian police have also dismantled a cryptocurrency investment fraud ring and arrested 21 individuals. The criminal group posed as a call centre and primarily targeted Japanese victims through social media platforms such as Tinder and 9monster.

Of the 21 arrested, 17 are Chinese nationals, while one Malaysian suspect appears to have acted as a courier. The remaining three suspects are from Hong Kong, Laos, and Myanmar, with ages ranging from 22 to 37.

The group operated out of a house in Kuala Lumpur for less than a month. The police have invoked Section 420 of the Penal Code (for fraud) in their investigation. The local male suspect was granted bail on the 25th, while the remaining 20 foreign nationals are being held under immigration laws.