Forex and Crypto Investment Fraud Busted in Malaysia, Ten Arrested and Millions Seized

By admin On Май 24, 2024

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Malaysian authorities have dismantled a forex investment fraud and cryptocurrency syndicate that had been operating in the country.

The syndicate, which had been laundering funds obtained through overseas scams, was targeted in a series of raids conducted across the Klang Valley from May 13 to 21.

As a result, eight local men and two women were arrested, and substantial amounts of assets were seized, according to reports from local media outlets.

Malaysian Officials Seize Over $12 Million Worth of Assets

During the raids, law enforcement officials managed to confiscate 129 vehicles with exclusive registration number plates, estimated to be worth $3.8 million.

Additionally, they seized 75 branded watches valued at $2.1 million, 18 luxury vehicles worth $1.7 million, over $100,000 in cash, and more assets.

Furthermore, bank accounts totaling $10.8 million were frozen as part of the investigation.

According to Inspector-General of Police Tan Sri Razarudin Husain, the suspects, aged between 28 and 51 years, were remanded for three to seven days for further investigation,

Highlighting the syndicate’s operations, Razarudin revealed that it had been active since 2017, primarily based in a foreign country.

The syndicate employed various methods, including unregistered money changers and cryptocurrency transactions, to transfer and launder funds from illegal activities.

The syndicate utilized several avenues to conceal the illicit proceeds.

It engaged in the sale and purchase of exclusive and classic car registration numbers, as well as luxury branded watches through a shop in Bukit Jalil.

The syndicate also resorted to converting cryptocurrencies into cash through unregistered money changers, effectively evading detection by law enforcement agencies.

Razarudin urged the public to remain vigilant and report any suspicious activities related to money laundering or fraudulent investment schemes.

“The public is asked to continue playing the role of eyes and ears to channel information on fraudulent investment and syndicates selling/buying registration (plate) numbers and related crimes to police.”

April Records Lowest Crypto Hack Losses

The cryptocurrency industry experienced a major downturn in combined losses from hacks and scams in April.

The month saw the lowest combined losses from crypto-related hacks and scams since 2021, with approximately $25.7 million lost to exploits, hacks, and scams.

More specifically, only $25.7 million was lost in attacks throughout the month, marking the lowest amount since CertiK began tracking such data in 2021.

Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages.

This marked the lowest incidence of flash loan attacks since February 2022, and $4.3 million was lost to exit scams.

As reported, the first quarter of this year has seen $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January alone.

Nonetheless, the number represents a 23% decrease compared to the first quarter of 2023.

It is also worth noting that $73,885,000 has been recovered from stolen Web3 capital in 7 specific situations.