Investors lose RM52 million to alleged cryptocurrency scam

Kong (second left) holds a discussion with the victims of the case.

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KUCHING, Jan 14: A group of investors have fallen victim to an alleged investment scam with an estimated total loss of RM52 million.

Special assistant to Democratic Action Party (DAP) chief Chong Chieng Jen, Michael Kong Feng Nian, in stating this said he had recently met with the group that have said that they were recently allegedly duped into a Multi-Level Marketing (MLM) type of investment where cryptocurrency was the main product.

“This group of investors represent close to 1,000 investors in Sarawak with a total investment of approximately 250 Bitcoins and 600 Ethereum.

“At today’s market rate, the total investment is worth more than RM52 million with 250 Bitcoins worth approximately RM44,620,000 and 600 Ethereum worth RM8,190,000,” he said in a statement today.

Kong said from the testimony of this group, there are many more people out there who have invested their hard-earned money in the company.

“I have been told that in total, it is estimated that this company has managed to gather approximately 8,000 Bitcoins and 10,000 Ethereums since its establishment in March 2019.

“This investment size is equivalent to approximately RM1.57 billion. I will be assisting this group of investors to explore what can be done to help them recover their investments,” he added.

Kong further reminded members of the public to carry out proper checks to ensure that a business is viable and legitimate before investing in any schemes, adding that due diligence must also be made with Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) that these entities have the required MLM licenses.

At the same time, he said that checks must also be made with Bank Negara Malaysia and/or Securities Commission to ensure that these organisations have the required licences to take deposits from the public. — DayakDaily