Fake FX Investment Scheme Cost Malaysians RM3.9 Million

A total of 38 Malaysian investors have come forward alleging they were deceived by a fraudulent foreign exchange (forex) investment scheme, resulting in collective losses exceeding RM3.9 million. The victims suspect that the entire investment programme was a fabricated ruse designed to mislead and exploit unsuspecting individuals.

According to information revealed at a recent press conference, the scheme was initially introduced through a training centre based in Kuala Lumpur. The centre promoted a series of courses that claimed to teach forex trading skills. However, it was later discovered that these courses were part of a carefully crafted scam.

Victims reported that the trainers behind the scheme assured participants that their investments would be managed by a licensed overseas broker. To reinforce the credibility of the operation, the organisers reportedly presented documents believed to have been forged and guaranteed monthly returns ranging from 6% to 10%.

Approximately a year after the investments were made, the participants were suddenly informed that their trading accounts had been compromised by a hacking incident. Simultaneously, the original forex trading platform was switched to a cryptocurrency investment platform. This new platform did not allow withdrawals and had no liquidity, leaving investors unable to recover their funds.

The scheme was reportedly orchestrated by an individual claiming to hold a “Datuk Seri” . The operations were run under a company registered under his name, but he has since become unreachable.

Datuk Hishamuddin, Secretary-General of the Malaysian International Humanitarian Organisation, revealed that neither the forex courses nor the investment promotions were licensed by the Securities Commission Malaysia (SC). He explained that such activities may have breached Section 58 of the Capital Markets and Services Act 2007 (Act 671), which carries penalties of up to 10 years imprisonment and fines upon conviction.

He clarified that while the company claimed to be registered in Seychelles and operating in Labuan, these registrations did not legitimise its investment promotions within Malaysia. All transactions, including fund transfers, were conducted through companies and bank accounts registered locally, placing the case squarely under the jurisdiction of Malaysian law enforcement.

Victims shared their devastating experiences. Mr Lim, aged 55, said he and his family lost RM1.2 million, essentially their entire life savings. Another victim, Mr Chan, 50, disclosed that he invested RM86,000 after attending a briefing in July 2022. By March 2023, he was informed of a system breach and has been unable to withdraw his funds since.

An elderly victim, Mr Cheam, 78, appealed to the government to implement stricter regulations to curb the proliferation of unlicensed investment promotions. He emphasised that this was not an isolated case and warned that such scams were becoming increasingly common.

Datuk Hishamuddin urged the police to expedite the investigation and submit their findings to the Attorney Generals Chambers. He noted that, aside from criminal fraud under Section 420 of the Penal Code, the case could potentially involve criminal breach of trust, misappropriation of funds, and offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).