Malaysian Authorities Disrupt Call Center Involved in Cryptocurrency Investment Scam Aimed at Japanese Nationals

The Royal Malaysian Police (PDRM) has shut down a cryptocurrency investment scam call center in Kuala Lumpur, which reportedly focused on Japanese citizens.

The operation took place on August 19, following synchronized raids on two high-end residential locations in the capital, as reported by The Edge Malaysia.

During the crackdown, 21 individuals aged between 22 and 37 were apprehended.

The group included one Malaysian man, 16 Chinese nationals (including one female), a Laotian woman, and one man each from Hong Kong and Myanmar.

Crypto Fraud Call Center Active for One Month

According to Datuk Seri Ramli Mohamed Yoosuf, Director of the Bukit Aman Commercial Crime Investigation Department (CCID), the foreign suspects were hired as customer service agents.

Conversely, the local individual was recognized as the call center’s caretaker.

“The call center had been in operation for just a month. The syndicate functioned from luxury bungalows, enclosed by high-security fences and situated away from main roads to evade detection,” Ramli stated during a press briefing at Menara KPJ.

The fraudulent operation involved enticing victims through social media platforms like Tinder and Monsters.

Once communication was established, victims were convinced to invest using the Bitbank and CoinCheck applications.

The investigation also revealed that the syndicate members had entered Malaysia on social visit passes and received commissions amounting to 20% of the defrauded amounts.

Alongside the arrests, authorities seized 17 computer systems, 55 mobile phones, a router, a set of keys, and two alarm units.

The local suspect was released on police bail on August 25, while the other 20 individuals remain in custody under the Immigration Act 1959/63.

The case is being examined under Section 420 of the Penal Code, which pertains to cheating and dishonesty.

Six Malaysians Charged with Kidnapping for Ransom

In a different case, six Malaysian nationals, including a married couple, have been charged with the kidnapping of a Chinese citizen and demanding a ransom of 1 million USDT.

The suspects, aged between 25 and 29, allegedly kidnapped the victim on July 11 at an expressway exit connecting Kuala Lumpur and Putrajaya.

Additionally, Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, recently revealed that illegal cryptocurrency mining activities have resulted in substantial electricity theft, costing the nation an estimated $723 million from 2018 to 2023.

Kerajaan heboh nak laksanakan agenda peralihan tenaga sebab nak tambah sumber tenaga yang baru.
Tapi dalam masa yang sama kecurian elektrik sampai ratusan juta, ada tahun mencecah berbilion ringgit setahun berlaku di negara kita.
Ironi sungguh. pic.twitter.com/ZkWz7eIWrn

— Akmal Nasir (@akmalnasir) July 10, 2024

The Malaysian authorities have been intensifying their efforts against cryptocurrency miners since at least August 2019, with Nasir highlighting that these actions are conducted in accordance with the nation’s criminal procedure laws.

Some confiscated machines have even been destroyed by a steamroller as part of the disposal process.

In addition to tackling illegal mining operations, Malaysian authorities have also acted against unregistered cryptocurrency exchanges.

In May of the previous year, the Securities Commission Malaysia instructed Huobi Global, a cryptocurrency exchange, to halt its operations due to its failure to register its trading services.

Currently, HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International are the only registered cryptocurrency trading platforms in Malaysia.

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