Authorities have arrested six individuals in connection with the Kakaue crypto investment scam, which defrauded victims of RM18.33 million. The suspects, four men and two women aged between 19 and 41, are believed to be mule account holders linked to the fraudulent scheme. The arrests followed a series of coordinated raids across six Malaysian states, including Sarawak, Sabah, Penang, Kedah, Melaka, and Johor, from October 7 to October 11.
Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf confirmed the arrests, stating that the suspects were owners of mule companies whose accounts were used to funnel funds from unsuspecting victims. “They were detained following raids in Sarawak, Sabah, Penang, Kedah, Melaka, and Johor,” he said.
Investigations revealed that the scammers promoted the fraudulent scheme under the company name Kakaue, using social media platforms like Facebook to lure potential investors. Once individuals showed interest, they were added to a WhatsApp group where they were given details about the investment scheme.
Comm Ramli explained that the next step involved registering as a member through the Kakaue investment app, where victims were instructed to transfer funds to several company accounts through a customer service centre. “Through the app, victims could see whether there were profits in their investment,” he added.
However, despite being able to monitor supposed profits on the app, the victims soon found themselves unable to withdraw their funds. The company repeatedly gave excuses, preventing any withdrawals and leaving the victims without access to their money.
According to Comm Ramli, 50 police reports have been filed across the country, detailing the extensive losses incurred by individuals who fell victim to the scheme. The total losses amount to RM18.33 million, further highlighting the scale of the scam.
In a separate development, police have also uncovered a new tactic being used on social media, particularly TikTok, where scammers offer a “legal service” promising to recover lost funds for victims of online scams. Comm Ramli warned the public that such offers are fraudulent and are often part of another scam. “I stress that any offer claiming to ensure the return of lost funds for victims of scams is in fact another scam,” he cautioned, adding that the legal process must be followed to recover any funds lost to scams.
As investigations continue, the authorities are working to dismantle the network behind the Kakaue scam and hold those responsible accountable. The arrests mark a significant step in addressing the rise of crypto-related fraud in Malaysia, as more individuals fall victim to schemes that exploit the growing interest in digital investments.
The public is urged to remain vigilant and skeptical of investment opportunities that seem too good to be true, especially those promoted through social media or unfamiliar platforms. As cryptocurrencies continue to gain popularity, the risk of scams also grows, making it crucial for potential investors to thoroughly research any financial venture before committing their money.
