Operations of the Syndicate
Malaysian authorities successfully dismantled a forex investment fraud and cryptocurrency syndicate that had been operating in the country. The syndicate, involved in laundering funds obtained through overseas scams, was targeted in raids conducted across the Klang Valley from May 13 to 21. Eight local men and two women were arrested, and significant assets were seized during the operation.
Inspector-General of Police Tan Sri Razarudin Husain highlighted that the syndicate had been active since 2017, primarily based in a foreign country. The syndicate utilized various methods, including unregistered money changers and cryptocurrency transactions, to transfer and launder funds from illegal activities.
The syndicate engaged in the sale and purchase of exclusive car registration numbers, luxury watches, and luxury vehicles. It also converted cryptocurrencies into cash through unregistered money changers to avoid detection by law enforcement agencies.
Quotes from Inspector-General of Police Tan Sri Razarudin Husain:
“The syndicate employed various methods, including unregistered money changers and cryptocurrency transactions, to transfer and launder funds from illegal activities.”
“Razarudin urged the public to remain vigilant and report any suspicious activities related to money laundering or fraudulent investment schemes.”
Cryptocurrency Industry Challenges
In April, the cryptocurrency industry faced challenges with combined losses from hacks and scams. Total losses from crypto-related incidents in the month amounted to approximately $25.7 million, the lowest since 2021. Flash loan attacks caused $129,000 in losses, with the largest incident resulting in $55,000 in damages. Moreover, $4.3 million was lost to exit scams during this period.
- First quarter of the year: $336 million lost to Web3 hackers and fraud
- January losses: Nearly half of the total capital stolen
- Recovered funds: $73,885,000 from stolen Web3 capital in specific cases
