Malaysian director loses RM800,000 after crypto scam shows fake RM6 million balance

A Malaysian company director in his 40s lost more than RM800,000 to a crypto scam after a trading platform showed his holdings had grown to roughly RM6 million, a balance that vanished, along with his broker, the moment he tried to withdraw it, police said.

Although the director was initially uninterested, police said the alleged broker persuaded him to participate by promising substantial returns within a short period.

The victim subsequently transferred more than US$200,000, equivalent to about RM808,000, to several bank accounts to purchase the cryptocurrency.

What appeared to be a dramatic increase in the value of his investment soon became the central warning sign.

After the purported value of his holdings climbed to approximately RM6 million, the victim was locked out of the trading platform. He was also unable to reach the broker who had introduced him to the investment.

A police official said the victim eventually realised he had been deceived and lodged a police report.

“Initially, the victim was not interested, but the broker managed to entice him with promises of huge profits within a short period,” the police official said.

The case highlights a familiar feature of a crypto scam: an investment opportunity presented as a fast route to extraordinary returns, followed by the disappearance of access to funds or the people behind the scheme.

Crypto scam case highlights growing investment fraud risks

The cryptocurrency case was one of several reported fraud incidents involving Malaysian victims who were allegedly persuaded to hand over substantial sums of money.

In another case, a Felda settler lost almost RM800,000 after scammers allegedly impersonated a deputy public prosecutor and threatened her with arrest over an alleged money-laundering offence.

The woman reportedly became so convinced by the deception that she opened another bank account and handed her ATM card and PIN to the fraudsters.

“She even pawned her jewellery to pay them,” the police official said.

The ordeal reportedly began in April, when the woman received a call from a man claiming to be a deputy public prosecutor. The caller allegedly threatened to arrest her for money laundering.

For almost four months, the woman followed the instructions given by the scammers before finally telling her children after exhausting her funds. She later lodged a police report in Segamat.

Although the case did not involve cryptocurrency, police said it illustrates how fraudsters can use authority, fear and promises to manipulate victims into transferring or surrendering their money.

The separate cases also underscore the different forms financial fraud can take, from a sophisticated-looking crypto scam involving a purported digital asset launch to impersonation schemes designed to pressure victims into immediate action.

Fake TikTok investment scheme leaves victim RM245,403 poorer

In Tangkak, a 56-year-old palm oil entrepreneur lost RM245,403 after responding to a fake investment scheme promoted on TikTok.

Tangkak OCPD Supt Roslan Mohd Talib said the victim encountered an advertisement for the investment scheme on May 6. Like the earlier victims, she was allegedly attracted by promises of substantial returns within a short period.

The victim subsequently made 18 transactions between July 1 and Aug 22, transferring money to three different bank accounts believed to be mule accounts.

The transactions resulted in total losses of RM245,403.

“The victim was lured by promises of lucrative returns within a short period, as well as assurances that she would receive high returns on her capital,” Supt Roslan said.

The victim lodged a police report on Sunday, and the case is being investigated under Section 420 of the Penal Code for cheating.

While the Tangkak case was linked to a fake investment scheme rather than a cryptocurrency platform, the promise of unusually high returns remains a common feature across many investment fraud cases. For potential investors, the warning is particularly relevant where an online opportunity resembles a crypto scam or relies heavily on social media promotion.

Police urge public to check before investing

Authorities have urged members of the public to exercise caution when confronted with investment opportunities promising high returns with little effort.

Supt Roslan advised people to conduct checks before transferring money or committing funds to an investment opportunity.

“Members of the public are advised to conduct checks beforehand as a precaution to avoid becoming victims of fraud or scams,” he said.

He also urged people who believe they have fallen victim to fraud to act quickly.

Victims can contact the National Scam Response Centre at 997 as an early measure to try to stop the movement of funds into suspected scammers’ accounts.

The public can also obtain updated information about scams through the Commercial Crime Investigation Department’s social media platforms, including Facebook, Instagram and TikTok.

The cases serve as a reminder that the appearance of rapid profits should not be treated as proof that an investment is legitimate. In the Johor Baru case, the victim’s purported gains of roughly RM6 million ultimately provided no protection against the crypto scam, leaving him without access to both the supposed profits and his original capital.

As online investment fraud continues to exploit social media, prospective investors should independently verify companies, platforms and investment claims before sending funds. A platform showing rising balances does not necessarily mean those funds can actually be withdrawn a distinction that can become critical in a crypto scam.