TriumphFX Scam: RM23.7M Lost in Investment Fraud Syndicate

KUALA LUMPUR: A staggering RM23.7 million has been lost to the TriumphFX investment scam, with 72 police reports filed as of February 24, according to the Federal Commercial Crime Investigation Department (CCID). The syndicate, active since September 2019, allegedly lured victims through Zoom chats, promising monthly returns of four to seven percent.

Bukit Aman CCID director Datuk Seri Ramli Mohamed Yoosuf revealed that the syndicates operations have resulted in significant financial losses. “The syndicate is believed to have been active since September 2019 and is linked to losses totaling RM23.7 million to date. They promised monthly returns of between four and seven percent to their victims,” he said.

Authorities are currently reviewing 10 investigation papers under Section 420 of the Penal Code for cheating, which carries a penalty of one to 10 years imprisonment, whipping, and a fine upon conviction.

In addition to the TriumphFX scam, police have identified a related forex investment scheme known as TriumphFX Clone. This scheme, advertised on social media, promised profits within three hours of investment. Between 2024 and now, 23 investigation papers have been opened, involving losses of RM243,376.90.

The Malaysian Humanitarian Organisation (MHO) has also raised concerns, alleging that a locally-run firm defrauded 77 victims of RM48 million. MHO secretary-general Datuk Hishamuddin Hashim claimed the firm operated through 30 proxy companies and was registered in Seychelles.

This alarming trend of investment scams highlights the need for increased vigilance among investors. Earlier in December, Malaysias Securities Commission (SC) took enforcement action against Bybit and its CEO Ben Zhou for operating an unregistered digital asset trading platform. The SC directed Bybit to halt all advertising targeting Malaysian investors and to discontinue its Telegram support group for users in the country.

Operating a digital asset exchange (DAX) without proper registration is illegal under Malaysia‘s Capital Markets and Services Act 2007. Bybit and Zhou have been on the SC’s Investor Alert List since July 2021 for similar violations. The SC emphasized that trading on unregistered platforms leaves investors unprotected under Malaysian securities laws, exposing them to significant financial risks.

As investigations into the TriumphFX scam and related schemes continue, authorities urge the public to exercise caution and verify the legitimacy of investment opportunities. The rise in such scams underscores the importance of regulatory compliance and investor education to prevent further financial losses.

In summary, the TriumphFX investment scam has caused millions in losses, with victims lured by false promises of high returns. Authorities are working to dismantle the syndicate and recover funds, while regulatory bodies like the SC continue to crack down on unregistered platforms to protect investors.