Key Points
- Thai officials have cracked a cross-border cryptocurrency scam, arresting five people involved.
- The scam, which began in 2023, tricked a woman into investing over $620,000 in fraudulent cryptocurrency and stock portfolios.
Thai immigration authorities have put an end to a cross-border cryptocurrency fraud that swindled a local woman out of more than $620,000.
Five individuals associated with the scheme have been apprehended, including nationals from Cambodia, Myanmar, and Thailand. These individuals created a bogus investment group to attract victims.
The Scam Operation
The con job, initiated in late 2023, used a public Facebook group named “Investor Chat Room” as a bait to draw in the victim, known as Ms Mallika, with high-yield investment advice promises.
The fraudsters then persuaded Ms Mallika to switch the conversation to the LINE messaging app, where they convinced her to invest large amounts in supposedly lucrative cryptocurrency and stock portfolios.
The culprits reassured Ms Mallika that her portfolio needed time to yield returns or that more capital was necessary for leverage trading. To gain her trust, they even sent her small returns, creating an illusion of authenticity. The victim eventually transferred a total of 21 million baht (approximately $621,000) across various accounts linked to the network.
The Money Laundering Process
According to the Immigration Department, the funds were laundered across borders through a Burmese businessman who ran a front company in Thailand. This individual worked with accomplices in Cambodia, Myanmar, and Thailand using different accounts. The laundered money was eventually used to buy a luxury condo in Bangkok’s Rama 9 district, intended for a fast resale.
After the investigation, the Immigration Department obtained warrants from the South Bangkok Criminal Court for all key individuals involved, resulting in their arrests. The suspects are now facing charges of fraud, identity theft, and other crimes.
In a similar case, the operators of the EXW-Token scam defrauded Austrians of 20 million euros. The criminals promised lucrative returns but instead used the funds to finance a lavish lifestyle.
Earlier this month, the cryptocurrency exchange Binance assisted in freezing $100,000 USDT connected to Indian fraudsters who solicited funds under the pretense of investments in India’s renewable energy initiatives.