Malaysian authorities have successfully taken down a major cryptocurrency scam that targeted Japanese nationals. The Royal Malaysia Police, or PDRM, arrested 21 individuals in connection with the fraud in coordinated raids on two upscale properties in Kuala Lumpur. Among those arrested were 16 Chinese nationals, one Malaysian, a woman from Laos, a Hong Kong resident, and a man from Myanmar. The scheme, which had been operational for about a month, used dating platforms such as Tinder and Monsters to trick victims into investing in fraudulent cryptocurrency opportunities.
The perpetrators convinced their targets to invest in fake cryptocurrency apps like Bitbank and CoinCheck. To avoid detection, the operation was based in remote bungalows hidden behind tall fences. Police seized 55 phones, 17 computers, and other electronic devices used to run the scam during the raids. The exact amount stolen through the operation has not been reported, but authorities are investigating the case under Malaysia’s Penal Code, specifically Section 420, which pertains to fraud and cheating.
While the local suspect was granted police bail, the other 20 individuals remain in custody. This case is part of a larger trend of cryptocurrency fraud schemes in Asia, where scammers have increasingly turned to dating platforms and social media to deceive investors. Earlier, Filipino authorities arrested 99 individuals connected to similar scams, demonstrating a rise in crypto-related fraud across the region.
Globally, the rise in cryptocurrency scams has alarmed authorities. In the first half of 2024 alone, phishing scammers stole $314 million, with half of all scams involving cryptocurrency. Australian authorities have also cracked down on these schemes, dismantling over 600 fraudulent crypto websites in the past year as the issue continues to grow worldwide.
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