Thai Authorities Crack Down on $620K Crypto Fraud Ring

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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October 30, 2024 07:15 EDT

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Thai authorities have dismantled a cross-border crypto fraud that allegedly scammed a local woman of over $620,000.

According to a local source, the network spanned Thailand, Cambodia, and Myanmar. It operated a highly organized scheme involving fraudulent online investment opportunities, identity theft, and the strategic laundering of funds across borders.

Investigations revealed that the criminals had meticulously structured their operations, assigning specialized roles within the group to ensure the smooth execution of the scam.

The suspects in the case allegedly used a fake investment chat group to lure victims, then moved conversations to private messaging apps where they could exert more control.

In this case, the scammers targeted a Thai woman, identified as Ms. Mallika, through a public Facebook group labeled “Investor Chat Room,” claiming to offer high-yield financial advice.

When Ms. Mallika expressed interest, they encouraged her to communicate further on the LINE messaging app, ultimately convincing her to invest in what they claimed were high-return cryptocurrency and stock portfolios.

Over several months, Ms. Mallika transferred 21 million baht (approximately $621,000) to the fraudsters, who provided occasional returns to build credibility and create an illusion of legitimate profits.

Crypto Fraud: Thai Authorities Coordinated Efforts Across Borders

The scam involved various accomplices across multiple borders, each assigned specific roles in laundering the stolen funds.

The major people behind the operation were Mr. Moon, a Cambodian national, and Mr. Ko from Myanmar, who served as key handlers of the funds, coordinating with a Burmese businessman identified as Mr. Win, who used a front company in Thailand.

According to the Immigration Department, the funds were pooled and transferred to Ms. San, a Burmese accomplice who consolidated the money and used it to purchase a luxury condominium in Bangkok’s Rama 9 district, valued at about 10 million baht (approximately $297K).

Authorities believe the intention was to quickly resell the property to a third party in Myanmar to conceal the funds further.

With sufficient evidence, the Thai Immigration Department obtained arrest warrants from the South Bangkok Criminal Court and launched a coordinated operation to apprehend the suspects.

Mr. Ko, Mr. Moon, Ms. San, and Mr. Win were all detained and arrested. The Immigration Department subsequently transferred the detainees to Bang Rak Police Station, where further questioning revealed additional suspects, including another Burmese national currently under investigation.

Asia Increasing Vigilance on Crypto and Cross-Border Collaboration

This case adds to several recent crypto-related fraud investigations within the Asian region.

Earlier this month, Hong Kong police dismantled a $46 million crypto romance scam that targeted men across several countries, using sophisticated deepfake technology to create convincing romantic personas.

This scam operation, run by a well-organized syndicate, lured victims into fake relationships before persuading them to invest in fraudulent cryptocurrency platforms.

This crackdown on cross-border digital asset fraud follows similar cases worldwide, where fraudsters have increasingly turned to cryptocurrencies and international networks to evade detection.

Recently, a similar high-profile crypto fraud trial commenced in Nancy, France. Over 20 defendants were accused of scamming 1,300 victims out of €28 million ($30 million) through fake crypto and diamond investments. The complex operation involved 199 bank accounts across 19 countries to move the stolen funds.

To combat these schemes, Thai officials believe the arrests and evidence gathered in this case will help deter future cross-border scams, particularly in cryptocurrency.

The suspects now face a series of charges, including fraud, identity theft, and cybercrimes, for manipulating digital platforms to target unsuspecting investors.