12 cops in Malaysia arrested for alleged US$51,000 crypto robbery

KAJANG: Malaysian authorities have arrested 12 policemen, including four officers from the federal Commercial Crime Investigation Department, for an alleged gang robbery of about RM200,000 (US$51,000) in cryptocurrency after a bungalow raid.

The arrests came after a 31-year-old Chinese national claiming to be a market surveyor lodged a police report. 

All occupants of the house are Chinese nationals, who were in Malaysia at the invitation of a local company for business talks, according to their lawyer, who only wanted to be identified as Charles, reported news outlet New Straits Times (NST) on Thursday  (Feb 19). They had entered Malaysia between Jan 27 and 30, and most were in the country for the first time, Charles said.

The officers detained are an assistant police superintendent, an inspector, a sergeant, six corporals, two lance corporals and a constable, reported NST. They are aged 24 to 47.

The officers from the district’s commercial crime unit raided the double-storey bungalow at around 11pm on Feb 5, according to NST’s sources familiar with the matter.

The officers told the occupants they were on an anti-scam operation codenamed “Op Taring”, and suspected the occupants of being involved in online fraud activities linked to a Cambodian scam syndicate.

“After inspecting their electronic devices and passports, no evidence of criminal activity was found,” a source told NST, who added that there was no record of the complainant and his friends travelling to Cambodia.

The group told the officers they were market surveyors employed by a China-based company, but were allegedly threatened with arrest and immigration action unless they paid the officers RM400,000, according to the source.

Fearing for their safety, one of the victims contacted his employer in China. The suspects allegedly agreed to a payment worth about US$50,000 in Tether cryptocurrency, which was transferred to a cryptocurrency wallet provided by the suspects.

"The payment was made in the early hours, and only after confirmation of the transaction did the officers leave the premises," the source told NST.

Before departing, the suspects allegedly warned the group to vacate the house within two days or face further action.

Initial investigations led to the arrest of seven policemen from the district’s crime investigation department.

Four more policemen in the cyber and digital forensic units of the same department were subsequently detained. The suspects have been in the service for between two and 27 years.

They were detained by Feb 8 after a series of coordinated arrests by a special team from the district police headquarters over two days. 

The source also told NST that all 12 suspects are believed to have been present during the raid.

Investigators seized multiple mobile phones, SIM cards and documents believed to be linked to the police operation. 

The case is being investigated under the section 395 Penal Code for gang robbery. If convicted, offenders face a jail term of up to 20 years and caning.