IT Consultant Loses RM1.5 Million After Falling Victim To Crypto Investment Scam
GEORGE TOWN: An information technology consultant has lost almost RM1.5 million after allegedly falling victim to an online cryptocurrency investment syndicate operating through an application known as “Kakaue”.
Penang police chief Azizee Ismail said the 63-year-old victim lodged a report with the Commercial Crime Investigation Division of the Southwest District Police Headquarters on Saturday after discovering he was unable to recover his funds.
According to police, the victim first encountered the scheme in December 2023 after coming across a cryptocurrency investment advertisement on Facebook.
After clicking the advertisement link, he was connected with an individual through WhatsApp who introduced him to an investment programme involving the trading of USDT cryptocurrency.
“The suspect persuaded the victim to participate in the scheme and promised attractive returns from cryptocurrency transactions,” Azizee Ismail said in a statement.
The victim was later added to a WhatsApp group named “Saham Mececah Hati Orang”, where participants were given information about the investment programme and shown examples of purported profits.
As part of the scheme, the victim was instructed to install a mobile application called “Kakaue”, which was presented as the platform used for cryptocurrency trading and investment management.
Police said the victim subsequently carried out a series of financial transactions over several months.
Between March and September 2024, he transferred money on nine separate occasions into six bank accounts belonging to various companies as directed by the suspects.
The total amount transferred reached RM1,494,410.
Despite the application displaying what appeared to be investment profits and account balances, the victim later discovered that he could neither withdraw his earnings nor recover his original capital.
Repeated attempts to transfer the funds into his personal bank account were unsuccessful, prompting him to suspect that he had been deceived.
The case highlights the growing sophistication of online investment scams, many of which rely on social media advertisements, messaging platforms and professionally designed applications to gain the trust of potential victims.
Authorities have reminded the public to verify investment opportunities through legitimate regulatory channels and to remain cautious of schemes promising unusually high returns with minimal risk.
The case is currently being investigated under Section 420 of the Penal Code for cheating.
