Thailand Busts Global Crypto Fraud Network Worth $620K

Key Takeaways

• Thailand authorities have dismantled a cross-border fraud group.
• A local woman was allegedly scammed out of $620,000 through fake crypto investments.
• Crypto scams are increasing, and so is their complexity.

Authorities in Thailand have dismantled a cross-border scam that reportedly scammed a local woman for $620,000 through crypto investments.

The fraud group, made up of individuals from Myanmar, Cambodia, and Thailand, allegedly laundered the stolen money through a luxury property development.

Thailand Authorities Bust Crypto Scam

The crypto scam saw bad actors carry out identity theft, fraudulent investments and money laundering, a local news outlet in Thailand reported.

A Thai woman was lured by a Facebook group that claimed to provide free financial advice. The group of individuals used fake chat groups to build trust with victims before entering one-on-one conversations.

The woman, Ms. Malika, was convinced to invest in several fake crypto investments that she believed would provide high returns.

Ms. Mallika transferred around $621,000 to the fraud group spanning multiple months of conversations. The bad actors would provide occasional small returns to the woman to build trust in the scam.

Bad Actors Busted

Thailand’s authorities labeled a Cambodian man named Mr. Moon and a Myanmar resident named Mr. Ko as the main leaders of the scam group.

Authorities claimed that the two men handled the funds while communicating with a Burmese businessman named Mr. Win.

Once the funds had been received, they were transferred to an individual labeled Ms. San, a Burmese national. This individual reportedly laundered the money by purchasing a $297,000 luxury building development in Bangkok.

Thai authorities believe that the scam group intended to sell the property again to further hide the money.

Crypto Scams on Rise

Crypto scams are increasing, and so is their complexity.

In February, BitForex, an online cryptocurrency exchange, disappeared after withdrawing nearly $57 million from its hot wallets.

Users were subsequently blocked from accessing their accounts, highlighting Hong Kong’s ongoing struggle with suspicious crypto entities.

According to the FBI, U.S. citizens lost $5.6 billion to cryptocurrency scams in 2023, a 45% increase from the previous year.

In the first six months of 2024, the net losses from crypto scams reached $1.9 billion.

The FBI believes that the decentralized nature of the crypto industry is a key reason why scams are rising – hackers are able to pursue quick and irreversible transactions globally.