Cryptocurrency cheating racket crippled, three arrested

IPOH: Police have arrested three men suspected of being involved in a cryptocurrency investment cheating scheme.

Bukit Aman Commercial Crime Investigation Department director Comm Datuk Seri Ramli Mohamed Yoosuf said the arrests were made in several locations in the Klang Valley and Pahang on Wednesday (Jan 24).

Comm Ramli said the three suspects, aged between 35 and 55, were believed to have cheated 20 victims of about RM12mil.

"In 2022, a management company director had met with one of the suspects who invited him to invest in a cryptocurrency scheme from China.

"The suspect said the investment scheme promises about 50% in returns," he told a press conference at the state police headquarters on Wednesday (Jan 24).

"The director, who acted as an agent, then collected about US$2.7mil (RM12mil) from 20 investors, including four from China.

"The money was then put into a cryptocurrency wallet and several local bank accounts," he added.

Comm Ramli said on Oct 12 last year, the complainant checked and found that the investment money had been transferred from the cryptocurrency wallet into a bank account, believed to be one of the suspects.

"Sensing that he has been cheated, the man then lodged a report," he said.

From the analysis made by police on the cryptocurrency transactions, Comm Ramli said police identified and tracked down those who had received the money, which led to the arrests.

"We have also seized cryptocurrency worth US$54,996 (RM259,955) and are now trying to track down other accomplices," he said.