Police have arrested 11 people, including two women, for their alleged involvement in the Gigamax cryptocurrency investment scheme, which caused losses exceeding RM7.25 million. - NSTP/ASWADI ALIAS
KUALA LUMPUR: Police have arrested 11 individuals, including two women, in connection with the fraudulent Gigamax cryptocurrency investment scheme, which reportedly caused losses exceeding RM7.25 million.
Federal Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf said the arrests were made following a series of raids at Kuala Lumpur, Selangor, Pahang, Kelantan, Terengganu and Melaka on Nov 13.
These individuals involved the top management of the company involved, lecturers as well as those who were tasked with making crypto currency withdrawals," he said.
Ramli said based on police investigations, the alleged fraudsters, used the Gigamax platform which functioned as a broker for cryotocurrency investments and sales," he told reporters on Tuesday.
Investigations revealed that the platform was introduced in July 2022 by an academy involving a non-governmental organistion, he said, adding that the NGO offered education on blockchain and financial decentralization.
"Using their experience and knowledge in cryptocurrency, they managed to convice many people to invest," Ramli said adding that investors would use the platform to withdraw their profits daily.
Investors were also offered to join in an affiliate programme to motivate Gigamax users to attract more investors.
"Unfortunately, the platform only ran for about a year before it could no longer be accessed leaving investors unable to make further withdrawals.
"Following this, we received 101 report from investors until June 27," he said adding that the case was classified as fraud under Section 420 of the Penal Code.
Ramli advised those who want to make cryptocurrency investments to conduct detailed checks prior to parting with their money.
People need to know the characteristics of investments scams, he said, adding that in most cases they use personal and company bank accounts to receive investments.
Ramli said they also offer high returns on investment with minimal risk to investors