In a recent crackdown, Malaysian police have made a significant breakthrough by dismantling an alleged illegal crypto exchange suspected of facilitating unlawful activities.
The exchange, powered by USDT (Tether), was believed to be operating internationally, enabling Mainland Chinese citizens to exchange USDT for cash.
As authorities conducted a joint operation, combining the efforts of the police’s commercial crime investigation team and the National Financial Crime Center, a total of forty individuals were arrested.
The authorities discovered that the exchange systematically converted funds received from China into USDT, which were then transferred back to individuals in China.
As per the Malaysian media outlet Oriental Daily, the bust was co-conducted by the police’s commercial crime investigation team and the National Financial Crime Center.
This illicit operation raised concerns as the exchange was allegedly engaged in cryptocurrency exchange activities within Malaysia without proper authorization, violating local regulations that mandate registration with regulatory bodies.
Notably, the crackdown also revealed the exchange’s involvement in illegal online gambling activities, as detectives found evidence linking the group to a gambling syndicate primarily catering to Taiwanese customers.
Moreover, it was suspected that the suspects utilized “money mule” bank accounts to facilitate exchanges for Chinese individuals, allowing them to acquire chips for online gambling platforms.
During the raid, the police seized substantial evidence, including 88 mobile phones, a significant amount of cash (equivalent to USD 5,000), gold bars, luxury watches, handbags, and assorted gold jewelry.
The detained suspects ranged in age from 20 to 58 and comprised individuals from both Malaysia and China, with one Singaporean man also among those arrested.
This crackdown comes on the heels of the recent order by Malaysia’s Securities Commission for Huobi Global, a prominent crypto firm, to cease its operations in the country.
Despite China’s ban on crypto buying, there is still a significant appetite among Chinese citizens for cryptocurrencies, leading some individuals to resort to overseas platforms to engage in trading activities
