IPOH: The Perak commercial crime investigation department (CCID) apprehended 11 people on suspicion of running a cryptocurrency investment scam, during a raid at a hotel, here, on Jan 20.
The group organised a seminar promoting a cryptocurrency trading bot, targeting 55 people, with promises of 0.5% to 2.2% daily returns based on the invested capital, Bukit Aman CCID director Ramli Yoosuf said.
He said the suspects comprised nine Malaysians (seven men and two women) and two Filipino men.
The gang, he said, operated under the name “D’Luxe” and utilised an artificial intelligence (AI) bot on an online platform to deceive investors, especially those unfamiliar with cryptocurrency trading.
Ramli said the gang began promoting the scheme earlier in the month and the suspects were involved in organising, sponsoring, speaking and recruiting customers during the cryptocurrency seminar.
“Most of the seminar participants were Malaysians, aged between 40 and 60. They did not understand cryptocurrency trading and were unaware that the platform created was actually a trap to deceive investors,” he told a press conference here.
The raid resulted in the seizure of various items, including mobile phones, laptops, scripts, cheques, and six different types of vehicles, Ramli said.
He said the suspects have been remanded until further notice, and the case is being investigated for cheating under Section 420 of the Penal Code.
Meanwhile, Ramli said Bukit Aman’s cryptocurrency crime investigation unit arrested three men in the Klang Valley and Pahang, believed to be connected to another cryptocurrency investment scam.
He said the suspects, aged 35 to 55, were apprehended for their involvement in a China-based cryptocurrency project named “CCGDS”.
Ramli said the complainant was promised a 50% profit from the project and the suspects collected funds from 20 investors.
The complainant later discovered a loss of RM12 million.
Ramli said the unit seized cryptocurrency worth US$55,000 and the three suspects have been remanded until tomorrow.
Police are tracking down other suspects still at large.