Fraudulent Crypto Investment Broker Kakaue Busted by Malaysian Police

Malaysian police have announced the arrest of six suspects involved in the “Kakaue” cryptocurrency investment scam, which cost RM18 million to the victims.

Bukit Aman Commercial Crime Bureau chief Ramli Yoosuf said the police conducted nationwide raids in Malaysia from Oct. 7 to 11 and arrested suspects aged between 19 and 41.

So far, the police have received fifty reports of the scam.

According to the investigation, the suspects advertised fake cryptocurrency investment broker Kakaue on Facebook and used shell companies to receive investment money from victims.

Victims who became interested in the advertisements joined a WhatsApp group created by the scammers, where they were told more about the investment program and instructed to download Kakaue's investment application.

Once the victims registered as users, the scammers asked them to contact the customer service center and to transfer the investment funds to the bank accounts of the shell companies.

Despite the fact that the victims saw their accounts “in profit”, Kakaue used various excuses to prevent them from withdrawing.