Two Chinese nationals fined just US$1,153 each over crypto investment scam in Malaysia

JOHOR, MALAYSIA: A magistrates' court in Johor has fined two Chinese nationals RM4,700 (US$1,153) each after they pleaded guilty to conspiring to carry out a bogus online cryptocurrency investment scheme.

Chen Le, 36, and Zhong Guoxuan, 31, entered their guilty pleas on 21 September 2026 after the charge was read before magistrate Atifah Hazimah Wahab.

The court subsequently imposed a RM4,700 fine on each accused.

The case concerned an alleged conspiracy involving a non-existent online cryptocurrency investment scheme. The offence was allegedly committed at Marina View Resort in Bandar Baru Permas Jaya at 1.09pm on 11 September 2026.

Conspiracy charge under Penal Code

The two men were charged under Section 120B(2) of the Penal Code, which concerns parties to a criminal conspiracy to commit an unlawful act.

The charge was read together with Section 34 of the Penal Code, which establishes joint criminal liability for acts carried out in furtherance of a shared intention.

Under Section 120B(2), an offender may face "imprisonment for a term not exceeding six months or with fine or with both".

The statutory provision does not specify a maximum fine in its wording.

The punishment instead provides for imprisonment of up to six months, a fine, or both.

Proceedings before magistrates' court

Deputy public prosecutor Sarah Siti Aisyah Mustapha Kamal appeared for the prosecution.

Both Chen and Zhong were unrepresented during the proceedings.

The charge's maximum imprisonment term of six months places offences under the provision within the jurisdiction of the Magistrates' Court, according to the applicable sentencing framework.

Under the Subordinate Courts Act 1948, a First Class Magistrate can generally impose a maximum fine of RM10,000 unless a specific law provides otherwise.

A Second Class Magistrate can generally impose a fine of up to RM3,000.

Scam syndicates adapt as regional crackdowns intensify

Concerns are growing that organised scam syndicates are adapting to intensified law enforcement efforts across Southeast Asia by relocating their operations to new jurisdictions.

Recent crackdowns along the Thai-Myanmar border, as well as in Cambodia and Laos, have disrupted numerous large-scale scam compounds linked to online fraud.

Earlier in June, a Malaysian anti-trafficking non-governmental organisation alleged that criminal groups displaced from Cambodia, Laos and Myanmar could be shifting their operations into Malaysia.

The allegation prompted police to call for intelligence and evidence, while stepping up scrutiny of possible cross-border movements by organised criminal networks.

In recent months, Malaysian authorities have also uncovered alleged scam centres targeting victims in China, Singapore, Indonesia, Italy and Spain.

Investigations indicate that many of these operations specialised in cryptocurrency investment fraud, romance scams, fake employment offers and other forms of online deception.

Malaysia records RM2.77 billion in scam losses in 2025

According to a written parliamentary reply from Malaysia’s Home Ministry dated 21 January 2026, the country recorded RM2.77 billion (approximately US$684.6 million) in financial scam losses in 2025 alone.

The figure was the highest annual total recorded over the previous three years. Cumulative losses from online and financial fraud between 2023 and 2025 reached RM5.62 billion, underscoring the scale of the threat.

The ministry said scam-related losses stood at RM1.28 billion in 2023 before rising to RM1.57 billion in 2024, followed by a sharp increase in 2025.

Scams involving fraudulent phone calls, romance schemes, e-commerce fraud, fake financing offers and non-existent investment opportunities continued to account for a large share of reported cases.

Authorities said such scams remain widespread because criminal syndicates are highly adaptable and increasingly rely on digital platforms that allow them to reach potential victims rapidly across borders.