Malaysian Police Bust Crypto Investment Fraud Call Center Targeting Japanese Citizens

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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Last updated: 

August 27, 2024

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The Royal Malaysian Police (PDRM) has dismantled a crypto investment fraud call center in Kuala Lumpur, which allegedly targeted Japanese citizens.

The bust occurred on August 19, following coordinated raids on two upscale residential properties in the capital, according to a report from The Edge Malaysia.

During the operation, 21 individuals, ranging in age from 22 to 37, were arrested.

The group consisted of a Malaysian man, 16 Chinese nationals, including one woman, a Laotian woman, and one man each from Hong Kong and Myanmar.

Crypto Fraud Call Center Operational for a Month

According to Datuk Seri Ramli Mohamed Yoosuf, Director of the Bukit Aman Commercial Crime Investigation Department (CCID), the foreign suspects were employed as customer service representatives.

On the other hand, the local man was identified as the caretaker of the call center.

“The call center had been operational for only a month. The syndicate operated out of luxury bungalows, surrounded by high-security fences and located far from main roads, to avoid detection,” Ramli revealed during a press conference at Menara KPJ.

The fraudulent scheme involved luring victims through social media platforms such as Tinder and Monsters.

Once contact was established, victims were persuaded to invest using the Bitbank and CoinCheck applications.

The investigation also uncovered that the syndicate members had entered Malaysia on social visit passes and were paid commissions equivalent to 20% of the defrauded sums.

In addition to the arrests, police confiscated 17 computer systems, 55 mobile phones, a router, a set of keys, and two alarm units.

The local suspect was released on police bail on August 25, while the remaining 20 individuals remain in remand under the Immigration Act 1959/63.

The case is being investigated under Section 420 of the Penal Code, which deals with cheating and dishonesty.

Six Malaysians Charged with Kidnapping, Demanding Ransom

In a separate incident, six Malaysian nationals, including a married couple, have been charged with kidnapping a Chinese citizen and demanding a ransom of 1 million USDT.

The suspects, aged between 25 and 29, allegedly abducted the victim on July 11 at an expressway exit linking Kuala Lumpur and Putrajaya.

Furthermore, Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, recently disclosed that illegal crypto-mining operations have led to significant electricity theft, costing the country an estimated $723 million between 2018 and 2023.

The Malaysian authorities have been cracking down on cryptocurrency miners since at least August 2019, with Nasir emphasizing that these procedures are carried out in accordance with the country’s criminal procedure laws.

Some seized machines have even been crushed by a steamroller as part of the disposal process.

In addition to addressing illegal mining operations, Malaysian authorities have taken action against unregistered cryptocurrency exchanges.

In May last year, the Securities Commission Malaysia ordered Huobi Global, a cryptocurrency exchange, to cease its operations as it had failed to register its trading services.

Currently, HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International are the only registered cryptocurrency trading platforms in Malaysia.