22 Arrested in RM95,000 Crypto Scam Targeting European Investors

Malaysian authorities have moved swiftly to dismantle a cryptocurrency fraud operation, arresting 22 foreign nationals in a targeted raid.

The operation took place in the early hours of 7 April, when police stormed a homestay in Bagan Datuk believed to be functioning as a call centre for a coordinated fraud syndicate. The raid, conducted at approximately 1am, resulted in the arrest of 19 men and three women, all Chinese nationals aged between 22 and 40.

Law enforcement officials revealed that the group had been running a structured and highly active operation since at least February. The premises had been converted into a hub equipped with the tools needed to run a large-scale scam targeting overseas victims.

During the raid, police seized 35 mobile phones, nine laptops, and networking equipment with an estimated value of RM95,000. The volume and organisation of the devices point to a systematic effort to manage multiple communications channels and sustain continuous engagement with victims.

Investigators identified that the syndicate operated through a platform known as Pyxora Labs, which was used to present fraudulent investment opportunities. The platform appeared to mimic legitimate trading environments, creating a false sense of security for users unfamiliar with the risks of unregulated digital assets.

The groups activities were primarily directed at victims in Italy, highlighting the increasingly global reach of such scams. Using messaging applications such as WhatsApp and Telegram, the suspects initiated contact with potential victims and gradually built trust through persistent communication.

Authorities indicated that the syndicate employed calculated tactics to influence decision-making. By presenting seemingly credible investment prospects and applying subtle pressure, the group encouraged victims to commit funds quickly, reducing the likelihood of scrutiny or second thoughts.

Payments were made using USDT (Tether), a widely used stablecoin in the cryptocurrency market. Victims were guided to transfer funds through the Pyxora Labs application or website, a method that allowed the syndicate to move money across borders with limited traceability.

The case is being investigated under Sections 420 and 120(b) of the Penal Code, covering offences related to cheating and criminal conspiracy. Convictions under these provisions carry severe penalties, including imprisonment of up to 10 years, corporal punishment, and fines.

All 22 suspects have been remanded until 10 April as authorities continue to analyse seized devices and financial trails. Investigators are working to identify additional victims and assess whether the operation is linked to a wider international network.