A Malaysian contractor wired RM144,781 (about $30,000) across 11 bank accounts in 14 transfers to a crypto scheme that police say never existed. He was introduced to it on TikTok by a woman claiming to be Korean, Kuala Terengganu police said on Sept 19.
According to Azli, the woman persuaded the contractor to participate in an investment scheme that allegedly promised lucrative returns within a short period.
The case highlights how the crypto investment scam relied on the prospect of quick profits to persuade the victim to part with a substantial amount of his business savings. In July, a Malaysian businessman lost RM1.25 million ($265,000) to crypto investment scam.
Police said the contractor eventually transferred RM144,781.21 through 14 transactions involving 11 different bank accounts between Aug 4 and Sept 9.
The transactions were made over a period of more than a month, with the money coming from savings linked to his business.
Promised returns fail to materialise
The contractor reportedly became suspicious after the expected returns failed to materialise and he was unable to recover the money he had invested.
“The victim, eager to make quick and easy profits, invested RM144,781.21 from his business savings,” — ACP Azli Mohd Noor, Kuala Terengganu district police chief.
Azli said the victim also failed to contact the woman, identified as Eun Pyun, after his concerns about the investment grew.
“However, he became suspicious after he was unable to recover his investment or receive the promised returns. He also failed to contact the woman, known as Eun Pyun,” — ACP Azli Mohd Noor, Kuala Terengganu district police chief.
The disappearance of the alleged promoter and the failure to receive the promised returns prompted the contractor to report the matter to police.
The episode underscores the central pattern described by investigators: the crypto investment scam was presented as an opportunity for fast financial gains before the victim found himself unable to retrieve his funds.
Crypto investment scam under police investigation
The contractor lodged a police report at 6.19pm on Sept 18 after realising that the investment arrangement was allegedly fraudulent.
Police are investigating the case under Section 420 of the Malaysian Penal Code, which concerns cheating and dishonestly inducing the delivery of property.
The investigation follows allegations that the cryptocurrency investment scheme did not exist and that the money was instead transferred into 11 separate bank accounts.
The case therefore centres not on losses arising from cryptocurrency market movements, but on an alleged fraudulent investment arrangement that police say was presented to the victim as a legitimate opportunity.
The crypto investment scam reportedly resulted in the contractor losing nearly RM150,000, representing a significant portion of the savings he had accumulated through his business.
Crypto investment scam highlights risks of quick-return promises
The Kuala Terengganu case also illustrates the risks associated with investment approaches built around promises of rapid or lucrative returns, particularly when the initial contact occurs through social media.
In this case, the alleged introduction took place through TikTok before the victim was persuaded to put his savings into the scheme.
The police account does not state that the victim was investing in a particular established cryptocurrency, nor does it identify a legitimate cryptocurrency platform connected to the transactions. Instead, authorities described the operation as a non-existent cryptocurrency investment scheme.
The crypto investment scam investigation remains ongoing, and the police account does not indicate whether the money transferred to the 11 bank accounts has been recovered or whether any arrests have been made.
For now, the contractor’s report provides the basis for an investigation into the alleged fraud, with police examining the circumstances surrounding the transfers and the individuals behind the scheme.
The case serves as another example of how social-media introductions and promises of quick financial returns can precede substantial financial losses, particularly when victims transfer money before independently verifying an investment opportunity.
The crypto investment scam has left the contractor without the RM144,781.21 he transferred, while investigators work to establish how the scheme operated and who was responsible.
Police have yet to announce further details on possible suspects or recovery of the funds.
Source; The Star