Malaysian police arrest 21 in crypto fraud scheme targeting Japanese investors

Malaysian authorities have taken down a major cryptocurrency scam scheme targeting Japanese nationals.

According to local reports, the Royal Malaysia Police, also known as PDRM, arrested 21 individuals in connection with the fraud during coordinated raids on two high-end properties in Kuala Lumpur on Aug. 19.

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

The fraudulent scheme operated by convincing victims to invest in fake crypto opportunities through popular dating platforms including Tinder and Monsters. Reports confirm that the perpetrators directed their targets to invest using fraudulent apps like Bitbank and CoinCheck.

Moreover, the operation, which had been active for about a month, was carefully concealed. According to the police, the fraudsters operated out of bungalows, shielded by tall fences and located in remote areas to evade detection by law enforcement.

During the raids, police confiscated 55 phones, 17 computers, and various other electronic devices used to run the fraudulent operation. 

After the arrests, the local suspect was granted police bail when his period of remand was concluded on Aug. 25. The other 20 individuals remain in custody. The authorities are investigating the case under Section 420 of the Penal Code, which pertains to cheating and fraud.

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

Data shows that phishing scammers stole $314 million in H1 2024 alone. Belgium’s FSMA confirmed that crypto-related scams made up 50% of all fraudulent activities in the first half of this year. 

Last week, Filipino authorities arrested 99 individuals connected to crypto and romance scams.

Notably, Asia is not the only region with increased scams. Per a crypto.news report, Australians lost over $120 million to crypto scams over the past year. This surge in scam schemes has motivated increased scrutiny among authorities. Australian authorities took down 615 crypto scam websites in a year.