RM51.2M Forex and Crypto Fraud Exposed in Malaysia

Malaysian police have dismantled a GHC Forex and cryptocurrency investment scam syndicate, seizing assets valued at RM51.2 million. The group, identified as “Gang Wong,” was exposed through a comprehensive operation carried out by the Anti-Money Laundering Criminal Investigation (AMLA) team and the Secretariat Office of the IGP, Bukit Aman. Multiple raids were conducted across the Klang Valley from May 13 to 21.

Inspector-General of Police, Tan Sri Razarudin Husain, revealed that 10 local suspects, comprising eight men and two women aged between 28 and 51, were arrested for their alleged involvement in the investment scam. All suspects have been remanded for three to seven days under Section 4(1) of the Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) to assist with the investigation.

During the raids, police confiscated significant assets including 129 vehicle certificates with exclusive registration numbers valued at RM18 million, 75 luxury watches worth RM10 million, 18 high-end vehicles of various brands totaling RM9 million, and RM503,001 in cash. Additionally, 203 motorcycles worth RM406,000 and 10 branded handbags valued at RM90,000 were seized. Various foreign currencies were also confiscated, including 320,000 Japanese yen, 3,940 Thai baht, 455 Turkish lira, 290 Chinese yuan, 305 US dollars, 27,000 Korean won, 200 Singapore dollars, and 200 Australian dollars. Furthermore, authorities seized 10 chequebooks, 12 mobile phones, and computer equipment.

In addition to physical assets, 33 bank accounts totaling RM10.7 million have been frozen, and cryptocurrency worth RM3.5 million at current value has been seized. These assets are believed to be proceeds from the investment scam. The total amount of frozen and seized assets stands at RM51,213,176.

The syndicate, operational since around 2017 and based in an Asian country, laundered money through various methods. They conducted illegal money transactions by selling and buying high-value exclusive and classic registration numbers and high-end branded watches at a shop in Bukit Jalil. The syndicate transferred funds from illegal activities from a foreign country to Malaysia using unregistered money changers and cryptocurrency transactions. They also invested money in a 100-acre durian plantation and converted cryptocurrency to cash through unregistered money changers to evade law enforcement.

The proceeds from these illegal activities were also used to purchase properties within Malaysia, which are still being traced by authorities. The syndicate's sophisticated operations highlight the challenges faced by law enforcement in combating financial crimes and money laundering activities.

This bust is a significant achievement for Malaysian police, as it disrupts a major syndicate that has been operational for several years. It also serves as a stern warning to other criminal organizations engaging in similar illegal activities. The authorities are continuing their investigations to trace all assets and ensure that all those involved are brought to justice. This case underscores the importance of international cooperation in tackling cross-border financial crimes and protecting the integrity of financial systems worldwide.