Malaysian businessman loses RM1.25 million ($265,000) to crypto investment scam, police open probe

A 45-year-old businessman in Ipoh, Malaysia, has lost roughly RM1.25 million (about $265,000) in a crypto investment scheme, Perak police said Wednesday.

Investigators say the victim was recruited in January 2025 through a series of investment briefings, then made multiple transfers to a suspect-controlled e-wallet between March and April before he was unable to withdraw either his capital or the promised returns.

Crypto investment scam began with promises of high returns

According to Perak police, the victim was first introduced to several individuals in January 2025 who promoted cryptocurrency investment opportunities with promises of substantial profits. The investment proposal eventually developed into what investigators now suspect was a crypto investment scam.

Perak police chief Comm Datuk Mohd Alwi Zainal Abidin said the businessman attended several briefing sessions before deciding to participate in the investment opportunity.

“The victim attended several briefing sessions before agreeing to invest.” — Comm Datuk Mohd Alwi Zainal Abidin, Perak Police Chief

Police said that between March 28, 2025, and April 17, 2025, the businessman carried out multiple digital transactions to an e-wallet following instructions allegedly provided by the suspects behind the scheme.

The transactions continued over several weeks as the victim expected the investment to generate the returns that had been promised. However, instead of receiving profits, he eventually found himself unable to access either his earnings or the money he had invested, a common pattern seen in many crypto investment scam cases.

Victim reported crypto investment scam after failed withdrawals

Authorities said the businessman only realized something was wrong after repeated attempts to withdraw his funds proved unsuccessful.

“After failing to get the returns as promised and unable to withdraw his invested funds, he felt something was amiss and lodged a police report on July 10 this year.” — Comm Datuk Mohd Alwi Zainal Abidin, Perak Police Chief

The police statement indicates that the suspected crypto investment scam remained undetected by the victim for several months before he formally reported the incident.

Investigators have since opened an inquiry under Section 420 of Malaysia’s Penal Code, which covers offences involving cheating. The investigation aims to identify those responsible for orchestrating the alleged crypto investment scam and determine how the investment operation was conducted.

While police have not disclosed the identities of the suspects or the investment platform involved, the case highlights the financial risks associated with fraudulent cryptocurrency schemes that rely on unrealistic promises to attract investors.

Police urge public to verify investment offers

Following the latest crypto investment scam, Perak police urged members of the public to exercise caution before committing money to any investment opportunity, particularly those advertising exceptionally high or guaranteed returns.

“The people are advised to always be careful when it comes to investment offers that promise extraordinary and ludicrous returns.” — Comm Datuk Mohd Alwi Zainal Abidin, Perak Police Chief

The police chief also encouraged prospective investors to thoroughly investigate the companies, online platforms, and individuals promoting investment opportunities before making financial commitments.

According to the statement, investors should seek guidance from the appropriate regulatory authorities before proceeding with any investment decision. Authorities further advised the public to avoid transferring money into personal bank accounts or digital wallets that have not been independently verified.

Primary source: The Star