According to local news, the Royal Malaysian Police (PDRM) arrested 21 people linked to the scam during simultaneous raids at two luxury properties in Kuala Lumpur on August 19. These coordinated operations demonstrate the determination of Malaysian authorities in the fight against fake cryptocurrency networks.

The 21 suspects arrested included 16 Chinese nationals, a Laotian woman, a Hong Kong resident, a Myanmar man and a Malaysian. This fraud network, which was understood to be an international criminal organization, was carrying out a large-scale operation with the participation of people of different nationalities.

The scam scheme operated by luring victims to fake cryptocurrency investment opportunities through popular dating platforms. The suspects were using widely used dating apps such as Tinder and Monsters to trap victims. Such platforms allow criminals to easily reach the target audience.

Scammers were convincing victims to invest through fake applications. Victims were advised to invest in cryptocurrencies, especially through fake applications such as Bitbank and CoinCheck. Many of the victims ended up losing huge sums of money to scammers believing these fake investment opportunities.

It is stated that this fraud operation has been active for about a month and has been carefully concealed. According to the police, the criminals were operating from bungalows surrounded by high fences. Locating bungalows in remote areas was part of the strategy to hide from security forces.

This shows how professionally the fraud network is organized. Criminals made great efforts to keep their operations from the attention of law enforcement.

Malaysian police seized many electronic devices used in fraudulent activities during raids. 55 phones, 17 computers and various other electronic devices played an important role in the operation of the fraud operation. These devices were used to communicate with victims, manage fake investment opportunities, and deceive victims.

Following the arrests, a local suspect was granted police bail upon expiry of his detention period on 25 August. The other 20 people are still detained and the investigation against them continues.

Malaysian authorities are investigating this incident under Article 420 of the Criminal Code. This article covers crimes related to cheating and fraud and provides serious penalties for those involved in such crimes.

It has not yet been reported how much assets the victims lost from the fraud operation. However, it is known that cryptocurrency frauds are becoming widespread globally. In the first half of 2024, phishing scammers alone reportedly stole $314 million. According to Belgium’s financial regulator FSMA, crypto-related scams accounted for 50% of all fraudulent activity in the first half of this year.

Crypto fraud is on the rise not only in Asia but around the world. For example, Philippine authorities arrested 99 people linked to crypto and romance scams last week. Australia has also been affected by this wave of fraud.

According to recent reports, Australians lost more than $120 million to crypto scams last year. The increase in these fraud cases has prompted Australian authorities to take action. Australian authorities have demonstrated their commitment to combating such crimes by shutting down 615 crypto scam sites in one year.

The rise of cryptocurrency scams has forced authorities around the world to be more vigilant and take tougher action against such crimes. This operation, carried out in Malaysia, stands out as part of the global fight against international crypto fraud.