KUALA TERENGGANU: A petroleum company manager lost RM3.9 million in a cryptocurrency investment scam.
Terengganu Police chief Datuk Mohd Khairi Khairudin said the 53-year-old victim saw a Facebook advertisement about stock market trading using Artificial Intelligence (AI) in December last year.
“He joined a WhatsApp group for stock trading and was introduced to cryptocurrency investment in March this year.
“The victim opened an account with Baorui Exchange in the United States on March 16 with an initial deposit of US$1,500, and was later asked to increase the amount to US$200,000 to begin trading,” he said in a statement today.
He said on April 30, the victim attempted to withdraw US$300,000 but was blocked, being told he needed to upgrade to a ‘VIP Bronze User’ status by paying an additional US$200,000, and that withdrawing without upgrading would incur a US$500,000 penalty.
After negotiating, the victim deposited US$110,000 for the upgrade, and was then persuaded to make more investments.
On June 17, he tried to withdraw US$1 million but was told his account was under investigation for money laundering by US authorities and he needed to pay US$542,000 by June 21 to avoid his funds being frozen.
Realising the scam, he reported it to the police in Dungun with the case being investigated under Section 420 of the Penal Code.
Meanwhile, Mohd Khairi advised the public to be cautious and not fall for investment schemes promising high returns within a short period.
