Thai Immigration authorities crack down on $620K cross-border crypto scam

Thai immigration authorities have busted a cross-border cryptocurrency scam that duped a local woman out of more than $620,000.

Authorities arrested five people linked to the scam, including citizens of Cambodia, Myanmar and Thailand, who set up a fake investment group to entice victims, according to local news outlet Khaosod.

The scam, which began in late 2023, involved a public Facebook group called “Investor Chat Room”, which scammers used to lure the victim, identified as Ms Mallika, with promises of high-return investment advice.

The fraudsters then persuaded Ms Mallika to move the conversation to the LINE messaging app, where she was persuaded to invest large sums in promising cryptocurrency and stock portfolios.

The suspects assured Ms Mallika that her portfolio needed time to generate returns or additional capital was needed for leveraged trading. They even sent him small returns to build trust, creating the illusion of legitimacy. Over time, the victim transferred a total of 21 million baht (about $621,000) to multiple accounts connected to the network.

According to the Immigration Service, the funds were laundered across borders through a Burmese businessman who operated a shell company in Thailand and coordinated with accomplices in Cambodia, Myanmar and Thailand using various accounts. The laundered funds were eventually pooled together to purchase a luxury apartment in Bangkok’s Rama 9 district for quick resale.

Following the investigation, the Immigration Department issued arrest warrants from the Southern Bangkok Criminal Court for all key figures leading to their arrest. The suspects are accused of fraud, identity theft and other crimes.

A similar case of investment fraud, as previously reported by Crypto.news, involved operators of the EXW-Token scam who defrauded Austrians of 20 million euros. The perpetrators promised lucrative returns but instead used the money to fund an extravagant lifestyle.

Earlier this month, crypto exchange Binance helped freeze $100,000 in USDT linked to Indian fraudsters who were raising funds under the guise of investing in India’s renewable energy startups.