KUALA LUMPUR: Eleven individuals were detained in connection with a crypto investment scheme (Gigamax) that resulted in RM7.2mil in losses.
Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf said the suspects, aged between 34 and 59 years old, were detained in Kuala Lumpur, Selangor, Pahang, Kelantan, Terengganu and Melaka on Nov 13.
"Among the roles of the suspects were the top management of an investment academy, lecturers and those who withdrew crypto currency," he told a press conference at CCID headquarters on Tuesday (Nov 26).
The investment academy, run by an NGO, had introduced a platform functioning as a cryptocurrency broker.
"It was introduced and promoted in July 2022 by the academy.
"The academy also provided courses on blockchain and decentralisation finance" he said.
Through their expertise and knowledge, the academy managed to convince many investors, he said.
"The platform also enabled investors to make daily withdrawals.
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"Investors were also offered the 'affiliate programme' to spur platform users to find new investors," he added.
However, after a year, the platform could not be accessed and all withdrawals were disrupted, Comm Ramli said.
"The investors then lodged police reports. So far, 101 reports have been received since June 27.
"We are investigating under Section 420 of the Penal Code," he said.
Comm Ramli also reminded the public to do sufficient research before making investments in cryptocurrency.
"Watch out for red flags including using individual accounts or accounts belonging to another company to make deposits and promising returns that are too good to be true," he said.
