Malaysians Protest at Bank Negara After Forex Scam Devastates Hundreds

A large-scale forex scam has left hundreds of investors in Malaysia and neighbouring countries grappling with losses exceeding RM104.75 million. Yesterday, around 200 victims gathered outside Bank Negaras office in Lebuh Light, Penang, urging authorities to investigate the scheme and bring its perpetrators to justice.

The fraudulent operation, allegedly orchestrated by a Russian individual claiming extensive expertise in forex trading, has affected a wide demographic of investors. Victims range from retirees to professionals such as doctors, bankers, and lawyers, with individual investments spanning RM20,000 to over RM1 million.

According to Malaysia International Humanitarian Organisation (MHO) secretary-general Datuk Hishamuddin Hashim, 388 police reports have been filed so far. These include complaints from 80 Indonesians and 30 Singaporeans, in addition to Malaysian investors. Many others have refrained from reporting due to threats from the schemes operators, who warned victims they would halt repayments if authorities were involved.

The scam was tied to a company registered in both Indonesia and Labuan, allegedly operated by a licensed forex broker in Malaysia. For years, from 2016 to 2022, the scheme appeared legitimate, with consistent payouts building trust among participants. This trust encouraged investors to increase their contributions and recruit others into the network.

However, the payouts abruptly ceased in 2022. One investor, Tan, 32, revealed that he had invested RM20,000 initially, joining a network of 50 to 60 people. Collectively, this group lost approximately RM10 million in unrecovered profits. Promised annual returns of 20% to 30%, they were left stranded when the scheme collapsed and their agent vanished.

Another victim, Hun, 35, recounted investing RM100,000 and recruiting 300 others into the scheme. He believed his efforts had secured him a significant return, only to face the harsh reality of losing everything. Similarly, Lee, 33, had recruited 1,000 individuals, confident he had earned RM3 million. Both were ultimately left empty-handed.

Hishamuddin stressed the need for immediate action from Bank Negara, pointing out that Malaysian laws provide mechanisms to prosecute perpetrators even if they are overseas. He emphasised that such scams exploit the financial aspirations of individuals and destroy lives.

The schemes mastermind was reportedly seen in Penang last year, surrounded by bodyguards. Victims have since struggled to track him down. Hun expressed frustration over the loss and the lack of accountability, reflecting the sentiments of many who had placed their trust in the operation.