Malaysia Pair Face Caning for Alleged $37K Bitcoin Fraud

If convicted, the two men face a maximum of 10 years in prison, caning and fines.

AccessTimeIconFeb 2, 2021 at 10:30 a.m. UTC
Updated Sep 14, 2021 at 11:04 a.m. UTC

Two Malaysians accused of running a scam involving bitcoin could soon face physical punishment as dictated under the country's stiff penal code.

According to a report by the Malay Mail on Tuesday, Reduan Ismail and Adan Ibrahim are alleged to have defrauded three women of more than 150,000 Malaysian ringgits (around $37,000). If convicted the pair face a maximum of 10 years in prison, caning and fines.

Touting their purported bitcoin investment scheme "Actionmode," it is alleged the pair met with one of the women on May 8, 2020 and two others on July 26, promising a 20% return on investment continuously over a seven-month period.

The two men, who both run other businesses, allegedly persuaded the women to invest in bitcoin when they otherwise may not have during their meetings at the Hotel Casuarina Meru in Ipoh, Perak.

According to the lawyers representing Ismail and Ibrahim, the pair's business accounts have been frozen under the country's Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Bail has been set at 2,500 Malaysian ringgits ($618) for each charge, while the court is expected to hear the case on March 9, according to the report.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Bank of England Committee Calls for Enhanced Crypto Regulation to Limit Contagion

The loss of $2 trillion of crypto market cap over a period of months has “underscored the need for enhanced regulation,” the Bank of England’s Financial Policy Committee said.

CoinDesk - Unknown
2
CoinDesk - Unknown
Nexo Signs Term Sheet With Vauld for Potential Acquisition

Nexo said it has a 60-day exclusive due diligence period in which to decide if it will acquire up to 100% of Singapore-based Vauld.

CoinDesk - Unknown
3
CoinDesk - Unknown
UK Government Seeks Views on DeFi Taxation

Those wishing to submit evidence have until Aug. 31 to do so.

CoinDesk - Unknown
4
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown