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Malaysian police arrest 21 in crypto fraud scheme targeting Japanese investors

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Malaysian authorities have foiled a major cryptocurrency fraud scheme targeting Japanese citizens.

According to local sources ReportsThe Royal Malaysian Police, also known as PDRM, arrested 21 individuals in connection with the fraud during coordinated raids on two upscale properties in Kuala Lumpur on August 19.

The suspects include 16 Chinese nationals, a woman from Laos, a Hong Kong resident, a man from Myanmar and one Malaysian.

The scam was carried out by convincing victims to invest in fake cryptocurrency opportunities through popular dating platforms including Tinder and Monsters. The perpetrators reportedly directed their targets to invest using fraudulent apps such as Bitbank and CoinCheck.

Moreover, the operation, which had been active for about a month, was carefully hidden. According to police, the scammers operated from small shacks protected by high walls and were located in remote areas to avoid detection by law enforcement.

During the raids, police seized 55 phones, 17 computers, and a variety of other electronic devices used in the scam.

Following the arrests, police released the local suspect on bail after his detention period expired on August 25. The other 20 people remain in custody. Authorities are investigating the case under Article 420 of the Penal Code, which relates to fraud and deception.

The exact amount of assets lost to this group has not yet been reported.

Data shows that phishing scammers stole $314 million in the first half of 2024 alone. Belgium’s goods and services watchdog confirmed that cryptocurrency-related scams accounted for 50% of all fraudulent activity in the first half of this year.

Last week, Philippine authorities arrested 99 people linked to cryptocurrency and romance scams.

It’s worth noting that Asia isn’t the only region seeing an increase in scams. According to a report by crypto.news, Australians lost over $120 million to cryptocurrency scams last year. This rise in scam schemes has led to increased scrutiny among authorities. Australian authorities shut down 615 cryptocurrency scam websites in one year.

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