12 Malaysian police arrested over alleged US$51k cryptocurrency robbery involving Chinese visitors

SELANGOR, MALAYSIA: Twelve police officers in Selangor have been arrested on suspicion of involvement in the alleged robbery of approximately RM200,000 (about US$51,079) in cryptocurrency from eight Chinese nationals during a late-night raid in Kajang, Selangor state.

Those detained include an assistant superintendent, an inspector, a sergeant, six corporals, two lance corporals and a constable aged between 24 and 47.

Four of the suspects were attached to the Commercial Crime Investigation Department at Bukit Aman.

According to local media reports citing police sources, the arrests were carried out over two days by a special team from the district police headquarters. The case is being investigated under Section 395 of the Penal Code for gang robbery.

The investigation was triggered by a police report lodged by a 31-year-old Chinese market surveyor. He alleged that he and seven friends were forced to transfer cryptocurrency to secure their release after their rented bungalow in Country Heights, Kajang, was raided.

Sources said a team from the district’s commercial crimes unit conducted the raid at about 11.10pm on 5 February 2026.

Officers reportedly informed the occupants that they were carrying out an anti-fraud operation known as “Op Taring”.

The raiding party allegedly suspected the group of involvement in online fraud activities linked to a syndicate in Cambodia.

However, after examining electronic devices and passports, no evidence of criminal activity was found, sources said.

“There are also no records showing that the complainant and his friend have been to Cambodia,” a source was quoted as saying.

The eight individuals, five men and three women aged between 25 and 45, reportedly told officers they were market surveyors working for a China-based company.

They had entered Malaysia between 27 and 30 January 2026, most for the first time.

Despite this, the victims alleged they were threatened with arrest and immigration action unless they paid RM400,000.

After negotiations, the amount was allegedly reduced to RM200,000, equivalent to 50,000 USDT, a cryptocurrency known as Tether.

According to sources, the transfer was made in the early hours of 6 February 2026 to a crypto wallet address provided by one of the suspects. Only after the transaction was confirmed did the officers leave the premises at about 12.30am.

Before departing, the officers were also accused of ordering the group to vacate the house within two days or face further action.

Initial investigations led to the arrest of seven officers from the commercial crime and crime prevention units.

Further intelligence gathering resulted in the detention of five more officers, including four assigned to cyber and digital forensic roles at Bukit Aman, on 8 February 2026.

Police seized several mobile phones, SIM cards and documents believed to be linked to the operation.

Remand applications were made at the Kajang and Bandar Baru Bangi Magistrates’ Courts to facilitate investigations, including efforts to trace the cryptocurrency transactions.

Sources indicated that the remand periods were extended before the suspects were released on bail.

Investigations are ongoing, and police have stated that the allegations are being taken seriously.

A lawyer representing the eight Chinese nationals, who identified himself only as Charles, told local media that his clients had travelled to Malaysia at the invitation of a local company to explore business opportunities.

He said he received a call for urgent assistance shortly after midnight on 6 February 2026 and went to the house, where he found the group visibly shaken.

Charles alleged that officers confiscated all electronic devices and examined their contents but found nothing incriminating.

Despite this, he claimed the officers insisted the group was operating a scam centre.

“They told my clients they could not find anything, but strongly believed the Chinese group was up to no good,” he said.

Charles further alleged that officers initially demanded RM400,000 before agreeing to accept RM200,000 in cryptocurrency.

He questioned the classification of the case as gang robbery rather than extortion.

Identification parades have since been conducted, and several officers were reportedly identified, including the individual alleged to have received the cryptocurrency.

Charles also expressed concern about the pace of investigations, particularly regarding efforts to trace the cryptocurrency.

He said investigators had repeatedly asked about his clients’ travel plans, which he found unusual.

“My clients are new to this country. Whatever the officers told them, they believed and made the transfer,” he said, adding that a police report was lodged at the Kajang police station shortly after the incident.