Malaysian Authorities Bust Syndicate Accused of Laundering Fraud Proceeds via Cryptocurrency

Law enforcement officials in Malaysia recently arrested ten individuals linked to a criminal syndicate that allegedly used cryptocurrencies to launder fraudulent proceeds. Assets, including motor vehicles, valued at more than $7.7 million were seized, and bank accounts holding approximately $10.8 million were frozen.

Syndicate Accused of Channeling Illegally Acquired Funds into Malaysia

Authorities in Malaysia recently busted a criminal syndicate that used cryptocurrency to launder fraud proceeds and 10 individuals associated with it were arrested. According to a local report, law enforcement agents seized 129 vehicles, valued at approximately $3.8 million (RM18 million), during raids conducted between May 13 and 21.

In addition to the vehicles, agents recovered branded watches, 18 luxury vehicles, motorcycles, and handbags worth over $3.9 million, as well as cash totaling $106,800. Malaysian authorities have reportedly frozen bank accounts containing an equivalent of $10.8 million. The syndicate allegedly acquired the seized assets with funds obtained from a scam involving the trade of exclusive and classic car registration numbers and luxury branded watches.

Tan Sri Razarudin Husain, the Inspector-General of Police, disclosed that the eight men and two women arrested were between the ages of 28 and 51. Razarudin added that they had been remanded under Section 4(1) of Malaysia’s Anti-Money Laundering, Anti-Terrorist Financing and Proceeds of Unlawful Activities Act.

The Inspector-General also revealed how the syndicate funneled funds, fraudulently obtained from a foreign country, into Malaysia. He said:

Based on the interrogation, the GHC forex and cryptocurrency investment fraud syndicate started operating in 2017 based in a foreign country. This syndicate transferred money from illegal activities from the foreign country to Malaysia using unregistered money changers and cryptocurrency transactions to launder the money.

Meanwhile, Razarudin stated that law enforcement agents discovered that funds, obtained from converting cryptocurrencies to cash, were used to purchase real estate properties. The Inspector General is also quoted in the report urging residents to continue providing information on syndicates’ activities in similar crimes.