POLICE have busted a cryptocurrency investment syndicate, involving losses of over RM50 million, with 40 arrests.

Bukit Aman Commercial Crime Investigation Department director Ramli Mohamed Yoosuf said the 31 men and nine women, aged between 20 and 55, were arrested in a three-day nationwide operation from October 29.

He said that of the 40 suspects, 38 were business owners, company directors and secretaries, while the rest were bank officers and agents looking for mule account holders.

“This operation was conducted after police received 76 reports from victims of investment scams, involving losses of RM50,620,880.29.

“The victims, aged between 22 and 81, are mostly retirees and businessmen,” he told a media conference in Kuala Lumpur today.

Ramli said the syndicate’s modus operandi was to offer cryptocurrency investments with short-term high returns.

“Investors were given access to monitor the cryptocurrency transaction activities in accounts registered under their names, but they could not withdraw the money,” he said.

He said police also detected a new trend among syndicates – using registered companies and businesses as mule accounts.

“We have traced 73 bank accounts used by the syndicate, involving 51 companies. We believe these companies and businesses were registered to carry out the scam,” he said.

Ramli said the syndicate approached homeless people or those financially troubled to use their names to set up companies and open company accounts.

“The case is being investigated under section 420 of the penal code for cheating,” he said. – Bernama, November 3, 2023.