KUALA LUMPUR: Police have received eight reports of fraud involving a non-existent crypto investment scheme called “Kakaue,” advertised on Facebook, with total losses amounting to RM3.5 million.

Bukit Aman Commercial Crime Investigation Department Director Datuk Seri Ramli Mohamed Yoosuf said that 22 bank accounts registered under various company and business names are being investigated for being used as mule accounts by the syndicate behind the crypto investment scheme.

On Wednesday, police received a report from a 57-year-old lawyer who claimed to have lost RM1.3 million after being duped into joining the investment scheme.

“Around December 2023, the victim, attracted by an advertisement on Facebook, was subsequently contacted via WhatsApp by several individuals claiming to be representatives from Kakaue Exchange (USA).

“After registering through the website www.kakauesr.com, the victim made staggered money transfers to 14 different company accounts, totalling RM1,339,918. Through the platform, the victim could see his investment generating profits,” he told a press conference here today.

However, the victim began to feel suspicious after failing to withdraw the profits he had supposedly made and discovering that the three cryptocurrencies he had purchased through the platform were not offered by other cryptocurrency exchanges.

Ramli also said another police report was received in Dungun from a 53-year-old man who claimed to have fallen victim to a cryptocurrency investment fraud.

In December 2023, the victim, a manager at an oil exploration company, was drawn to a crypto investment after seeing an advertisement on social media and being added to a WhatsApp group.

“In March 2023, the victim was introduced to crypto investments and opened an investment account with Baorul Exchange, allegedly based in the United States, starting with a deposit of USD 1,500. He was then asked to increase the deposit to USD 200,000 to begin trading.

“At the end of April 2024, the victim attempted to withdraw his profits but was blocked, being told that his investment would be upgraded to VIP Bronze User status and that additional payments were required for this purpose,” he said.

Ramli said the victim transferred money to various bank accounts owned by different companies, with the total amount transferred reaching RM3.9 million.