Malaysian authorities recently conducted a series of raids across the Klang Valley, resulting in the dismantling of a forex investment fraud and cryptocurrency syndicate. The syndicate, which had been laundering funds obtained through overseas scams, was targeted by law enforcement. As a result of the raids, eight local men and two women were arrested, and significant amounts of assets were seized. Among the assets confiscated were 129 vehicles with exclusive registration number plates valued at $3.8 million, 75 branded watches worth $2.1 million, 18 luxury vehicles valued at $1.7 million, over $100,000 in cash, and more assets. Additionally, bank accounts totaling $10.8 million were frozen as part of the investigation.
Inspector-General of Police Tan Sri Razarudin Husain revealed that the suspects, aged between 28 and 51 years, were remanded for further investigation. The syndicate had been operating since 2017 and primarily based in a foreign country. They employed various methods, including unregistered money changers and cryptocurrency transactions, to transfer and launder funds from illegal activities. The syndicate utilized several avenues to conceal the illicit proceeds, such as selling and purchasing exclusive and classic car registration numbers and luxury branded watches through a shop in Bukit Jalil. They also converted cryptocurrencies into cash through unregistered money changers to evade detection by law enforcement agencies. Razarudin urged the public to remain vigilant and report any suspicious activities related to money laundering or fraudulent investment schemes.
In April, the cryptocurrency industry experienced a significant downturn in combined losses from hacks and scams. It was reported that the month saw the lowest combined losses from crypto-related hacks and scams since 2021, with approximately $25.7 million lost to exploits, hacks, and scams. Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages. This marked the lowest incidence of flash loan attacks since February 2022. Additionally, $4.3 million was lost to exit scams. The first quarter of this year saw $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January alone. However, there was a 23% decrease in losses compared to the first quarter of 2023. Furthermore, $73,885,000 has been recovered from stolen Web3 capital in seven specific situations.
Overall, the Malaysian authorities have made significant progress in dismantling a forex investment fraud and cryptocurrency syndicate that had been operating in the country since 2017. Through a series of raids across the Klang Valley, they managed to arrest ten suspects and seize millions of dollars worth of assets, including vehicles, watches, cash, and frozen bank accounts. The syndicate used various methods to transfer and launder funds obtained through illegal activities, including unregistered money changers and cryptocurrency transactions. The public has been urged to report any suspicious activities related to money laundering or fraudulent investment schemes. Additionally, the cryptocurrency industry saw a decrease in combined losses from hacks and scams in April, marking the lowest amount since 2021. Flash loan attacks and exit scams contributed to the losses, with $73,885,000 recovered from stolen Web3 capital in specific situations.
