Malaysian Police Arrest 6 in RM18 Million 'Kakaue' Cryptocurrency Scam

Malaysian authorities have arrested six individuals in connection with the “Kakaue” cryptocurrency investment scam, which defrauded victims of an estimated RM18 million. The suspects, aged between 19 and 41, were apprehended during a series of nationwide raids conducted by the Bukit Aman Commercial Crime Bureau between 7-11th October 2024.

Chief of the Bukit Aman Commercial Crime Bureau, Ramli Yoosuf, revealed that the police had received fifty reports from victims across the country, all of whom were lured by the fraudulent investment scheme. The investigation uncovered that the suspects had been promoting Kakaue, a fake cryptocurrency investment broker, primarily through advertisements on Facebook. To facilitate their fraudulent activities, the scammers created and used shell companies to receive investment funds from their victims.

The scam's process was carefully orchestrated. Victims who expressed interest in the Kakaue advertisements were added to WhatsApp groups controlled by the scammers. Within these groups, they were provided with details about the supposed investment opportunities and were instructed to download Kakaues investment application. The victims were then directed to contact a fake customer service center and transfer their investment funds to designated bank accounts, which were linked to the shell companies established by the fraudsters.

Although the victims accounts appeared to show profits on the app, they encountered significant difficulties when attempting to withdraw their funds. The scammers repeatedly provided excuses to block any withdrawal attempts, leaving the victims unable to recover their investments.

The police emphasized that these types of schemes are becoming increasingly sophisticated, using digital platforms and fake applications to deceive unsuspecting investors. Authorities urged the public to remain cautious of investment opportunities that promise high returns and to verify the legitimacy of brokers before committing any funds.

The arrest of the six suspects marks a significant step in combating cryptocurrency-related fraud in Malaysia. The police continue to investigate the full extent of the scam and are working to recover the stolen funds.