Jakarta, Indonesia Sentinel — Indonesia’s National Police (Bareskrim Polri) has uncovered an international crypto investment scam that defrauded at least 90 victims, with total losses amounting to Rp105 billion (approximately $6.7 million).
The case came to light following police reports filed with Bareskrim Polri and complaints received by the Indonesia Anti-Scam Center (IASC) under the Financial Services Authority (OJK). The perpetrators lured victims by offering stock and cryptocurrency trading through online platforms that turned out to be fraudulent.
According to Brigadier General Himawan Bayu Aji, Director of Cyber Crime at Bareskrim Polri, the number of victims is expected to rise as investigations continue. “As of now, we have identified 90 victims with total losses reaching Rp105 billion,” Bayu Aji stated at a press conference in South Jakarta on Wednesday (March 19).
Victims were found across multiple regions, with the highest concentration in Jakarta, Surabaya, Medan, and Makassar.
Crypto Scam Scheme Unveiled
The scam began with advertisements on Facebook promoting stock and crypto trading opportunities promising substantial returns. “Starting in September 2024, victims saw Facebook ads about stock and cryptocurrency trading,” Bayu Aji said.
Upon clicking the ads, victims were directed to communicate via WhatsApp with individuals posing as mentors or trading experts. These so-called “mentors” would provide guidance on stock and crypto trading, eventually adding victims to WhatsApp groups filled with other alleged investors—who were, in reality, part of the scam network.
To build credibility, scammers hosted nightly online learning sessions led by a figure claiming to be “Professor AS.”
Victims were encouraged to trade on platforms such as JYPRX, SJIPC, and LAADXS, which were only accessible through manipulated websites and Android applications created by the scammers.
Once victims deposited funds into company accounts set up by the perpetrators, they found themselves unable to withdraw their money. Their accounts were suddenly blocked, with the scam operators citing trade suspensions.
Some victims were even asked to pay additional taxes before being allowed to access their funds, a ruse designed to extract even more money.
Promises of High Returns
A key strategy used by the scammers was promising exceptionally high returns to lure victims. “Victims were told they could earn bonuses ranging from 30% to 200% after joining the stock and cryptocurrency trading scheme,” Bayu Aji explained.
To further build trust, scammers also gave victims luxury gifts such as wristwatches and tablets if they invested large sums. “These gifts were used to convince victims that the investment scheme was legitimate. The perpetrators specifically targeted individuals seeking quick profits,” he added.
Three Suspects Arrested, Others at Large
According to Kumparan, Bareskrim Polri has arrested three suspects in connection with the crypto scam: AN, MSD, and WZ. Each played a different role in the operation.
- AN was responsible for setting up shell companies and nominee bank accounts used for money laundering. He had been working since October 2024 under the instructions of two other suspects, AW and SR, who are currently fugitives.
- MSD was tasked with recruiting individuals to open cryptocurrency exchange accounts and bank accounts in Medan, offering them Rp200,000 to IDR 250,000 ($12 to $16) per account.
- WZ acted as the coordinator for nominee accounts and shell companies used to funnel victims’ funds.
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Authorities revealed that the stolen funds were funneled through hundreds of mobile devices before being sent to Malaysia, where an individual identified as LWC managed the operation. LWC, a Malaysian national, has been placed on Indonesia’s most-wanted list.
Police are now working with international law enforcement agencies to issue a Red Notice for LWC’s arrest. Meanwhile, two Indonesian suspects, AW and SR, remain at large.
Legal Consequences
The three arrested suspects face multiple charges, including violations of Indonesia’s Electronic Information and Transactions (ITE) Law and anti-money laundering laws.
“The suspects have been charged under Article 45(1) in conjunction with Article 28(1) of the ITE Law, Article 378 of the Criminal Code, as well as Articles 3, 4, 5, and 10 of Law No. 8 of 2010 on the prevention and eradication of money laundering crimes,” Bayu Aji stated.
Authorities are urging the public to be cautious of online investment schemes that promise unrealistic returns and to verify the legitimacy of trading platforms before investing.
(Raidi/Agung)
