KUALA LUMPUR, Feb 5 — Police arrested nine local men on suspicion of being involved in a cryptocurrency investment fraud syndicate, resulting in losses amounting to about RM2.8 million, in several raids in Penang, Selangor and Kuala Lumpur on Wednesday.
Bukit Aman Commercial Crime Investigation Department director Datuk Zainuddn Yaacob said all the suspects, aged 34 to 62, were arrested between 6.20am and 8am that day and are believed to be involved in an investment scheme known as Emas Fintech.
He said the syndicate was believed to have been operating since April last year by offering returns on investments of 10 to 15 per cent per month and promising a supposedly secure currency trading system as well as a sophisticated system to attract the public.
“The investment capital uses cryptocurrencies, like Bitcoin and USDT, and investors are exposed to investing through face-to-face seminars or ‘Zoom’ meetings.
“However, investors have not been able to use the Emas Fintech website to view trading transactions since December 2020, leading them to believe they have been cheated. So far, 43 police reports have been lodged,” he told a special press conference today.
Zainuddin said police are still trying to locate a local man, Jason Kellady, 32, who is believed to be the mastermind. His last known address is Parlane OUG, Jalan 1/152, Kuala Lumpur.
“All the suspects have been remanded under Section 117 of the Criminal Procedure Code and investigations are conducted in accordance with Section 420 of the Penal Code as well as actions under POCA (Prevention of Crime Act 1959) and AMLA (Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001) will also be taken,” he said.
According to him, the three licensed cryptocurrency companies in Malaysia are Luno (M) Sdn Bhd, Tokenize Technology (M) Sdn Bhd as well as Sinegy Technologies (M) Sdn Bhd and advised the public not to be easily fooled by testimonials and promises of profits.
In a separate case, Zainuddin said police detained seven local individuals, including three women, on suspicion of being involved in a fraud scheme known as Iskandar Investment, through five arrests here on Monday.
He said the syndicate, which is believed to have been operating for a year since January last year, offered various packages to investors online using Facebook, with the cheapest package offering returns of RM7,350 through a capital of RM350 while the most expensive promised returns of RM49,450 through a capital of RM2,350.
“This syndicate has caused losses amounting to about RM830,000. All suspects, aged between 20 and 27, have been remanded for seven days from Tuesday and the case is being investigated under Section 420 of the Penal Code for cheating,” he said. — Bernama