Malaysian Police Bust ‘USDT-powered Crypto Exchange’ – Suspects ‘Sold Crypto to China’

Malaysian authorities have taken action against a suspected illegal international cryptocurrency exchange operating with USDT (Tether) as its primary currency. A total of forty individuals have been apprehended in connection with the case. According to reports, the exchange was allegedly facilitating the conversion of USDT into cash for Mainland Chinese citizens. The operation to shut down the exchange was a joint effort between the police's commercial crime investigation team and the National Financial Crime Center. Authorities claim to have successfully dismantled the exchange and suspect it of also offering illicit online gambling services. Detectives had been conducting an investigation into the activities of this exchange for a considerable period of time.

According to authorities, the exchange operated a systematic process of converting funds received from China into USDT, and subsequently transferring the tokens back to individuals in China. Detectives discovered evidence indicating that the group conducted cryptocurrency exchange activities within Malaysia without proper authorization. It is mandatory under Malaysian law for all cryptocurrency-related companies to register their operations with regulatory bodies. Failure to obtain the required permits can result in punitive measures. In a recent development, the Securities Commission of Malaysia instructed Huobi Global to cease its operations in the country. The commission specifically directed Huobi Global to disable its website and mobile applications on platforms such as the Apple Store and Google Play. Despite China's ban on cryptocurrency trading, the demand for crypto among Chinese citizens is believed to remain robust.

Malaysia: Where Did Suspected Crypto Exchange Operators Come From？

A coordinated operation by Malaysian police resulted in the simultaneous raid of multiple locations, leading to the apprehension of both male and female suspects. In an official statement, the police specified that the arrested individuals were aged between 20 and 58. The suspects were identified as Malaysian nationals, comprising 15 men and six women from China. Additionally, one Singaporean man was also taken into custody.

During the operation, law enforcement officers successfully seized a total of 88 mobile phones, as well as a substantial amount of cash, including $5,000 in USD. Additionally, they confiscated various valuable assets such as gold bars, luxury watches, cars, handbags, and a range of assorted gold jewelry.

Further investigations revealed that the exchange in question was allegedly involved in running a gambling syndicate, primarily catering to Taiwanese clientele. It is suspected that the suspects facilitated the use of “money mule” bank accounts by Chinese individuals, allowing them to exchange chips for online gambling platforms.