Malaysian Police Dismantle International Crypto Scam Network in Forest City, Arresting 335 Suspects

Malaysian authorities conducted a major raid on crypto scam operations at Forest City in Johor in July 2026, arresting 335 suspects across 32 locations. Most perpetrators were foreign nationals, primarily from China, with seized assets valued at approximately 2.45 million USD. The abandoned luxury development provided ideal conditions for criminal operations.

Overview of the Operation

In July 2026, Malaysian police dismantled two international crypto scam networks operating from Forest City, a mega-development in Johor state. Officers arrested 335 suspects across 32 locations—including 27 apartments and 5 luxury bungalows. Seized assets totaled approximately 2.45 million USD, including over 300 computers, 1,557 mobile phones, 17 laptops, and 10 modems.

The majority of arrested individuals were foreign nationals: 309 Chinese citizens, 19 Indonesians, 4 Myanmar nationals, and 3 Malaysian citizens.

How the Scam Operated

The criminal syndicate established call centers in vacant buildings throughout Forest City to conduct crypto investment fraud. Rather than a loose criminal group, the organization functioned like a multinational corporation, complete with dedicated recruitment teams, IT departments, and money laundering specialists.

Victims received solicitations for investment opportunities or cryptocurrency trading promises, typically via online contact. Perpetrators would isolate targets from external communication and pressure them to transfer funds, often through cryptocurrency wallets or international wire transfers.

Why Forest City Became a Target

Forest City, developed by Chinese company Country Garden since 2016, was marketed as a luxury smart city designed to accommodate 700,000 residents. However, actual occupancy fell drastically below projections—estimates suggest only 5,000 to 9,000 people inhabit the sprawling 14-square-kilometer complex, earning it the nickname "ghost city."

The vast number of vacant buildings and minimal police presence made Forest City an ideal operational base for criminal enterprises. The lack of foot traffic and monitoring meant criminal activities could continue undetected.

Compounding the problem, local property sales staff revealed that developers instructed employees to mislead prospective buyers by claiming "23,000 residents currently live here"—a false claim that mirrored the deception at the heart of the scam operations themselves.

Warning Signs and Prevention

Red flags in crypto investment scams:

Unsolicited investment proposals via social media or messaging platforms
Promises of guaranteed returns or unrealistic profit claims
Pressure to send money quickly
Progressive requests for additional investments once initial funds are provided
Restrictions on withdrawals or demands for "fees" to access funds
Unclear physical location or difficulty verifying company legitimacy
Recruitment pitches from unregistered operators
Too-good-to-be-true scenarios involving new investment platforms

Protective measures:

Verify any investment firm with Bank Negara Malaysia (BNM) or relevant financial regulators
Conduct independent due diligence even for referrals from acquaintances
Be skeptical of anyone pressuring you to decide quickly about investments
Avoid sending money to unfamiliar accounts or cryptocurrency wallets
Consult government fraud alerts and scam databases regularly
Ask for verifiable licensing documentation before engaging

Where to Report

Malaysia:

Police Hotline: 15999
Anti-Fraud Unit (AFU)

Indonesia:

Indonesian National Police Cybercrime Division

Japan:

National Police Agency Cybercrime Section
Consumer Affairs Agency: 188

If you encounter suspicious investment solicitations, report them immediately to local authorities.