Five Chinese Fined RM4,000 Each for Promoting Cryptocurrency Investment Scheme in Malaysia

Five Chinese nationals linked to a fraudulent cryptocurrency investment operation pleaded guilty in a Malaysian court on Monday and were each fined RM4,000 after admitting to their involvement in promoting a non existent crypto investment scheme through a scam call centre.

The five defendants, comprising three men and two women, appeared before the George Town Magistrates' Court earlier today following their arrest during a police operation. They were identified as Zhou Jianyu, 25, Zhang Junhao, 26, Feng Wei, 46, Hu Qian, 22, and Wang Zhuowen, 23. Their names were transliterated from Chinese.

According to the charge sheet, the group was accused of deceiving individuals into participating in a fictitious cryptocurrency investment programme through online channels. The offence allegedly took place at approximately 3.30pm on June 10 at an apartment unit in Batu Ferringhi, Penang.

The defendants were charged under Section 420 of Malaysia's Penal Code, which deals with cheating and dishonestly inducing the delivery of property. The provision carries severe penalties upon conviction, reflecting the seriousness of fraud related offences.

After the charges were read aloud in Mandarin by a court interpreter, all five defendants confirmed that they understood the allegations and entered guilty pleas.

During sentencing submissions, the prosecution informed the court that the defendants were operating from a call centre engaged in fraudulent activities involving fake cryptocurrency trading opportunities.

The victims targeted by the scheme were reportedly Chinese nationals. Although investigators were unable to determine the precise amount of financial losses suffered by victims, prosecutors stressed that the operation bore the hallmarks of a cross border fraud network designed to exploit growing interest in digital asset investments.

The prosecution further argued that such criminal activities not only cause financial harm to unsuspecting investors but also risk damaging Malaysia's international reputation.

According to the prosecutor, the presence of overseas scam syndicates operating from within the country could contribute to perceptions that Malaysia is becoming a regional hub for transnational fraud operations.

Given the nature of the offence, the prosecution urged the court to impose a stern sentence, including the maximum available fine, to serve as a deterrent against similar crimes.

“This type of offence has implications beyond individual victims. It affects the country's image and may encourage international scam syndicates to establish operations in Malaysia if decisive action is not taken,” the prosecutor submitted.

Representing the accused through the National Legal Aid Foundation, defence counsel appealed for a lighter sentence, highlighting the personal circumstances of each defendant and their cooperation with authorities.

The lawyer told the court that Zhou Jianyu is unmarried and works at a furniture factory in China. Zhang Junhao, also unmarried, was described as an ordinary worker in his home country.

Meanwhile, Feng Wei, the oldest among the defendants, is married and has one child. He reportedly earns a living as a chef in China.

The court was also informed that Hu Qian is unmarried and works as a makeup artist, while Wang Zhuowen is employed as a sales representative.

Defence counsel further submitted that all five defendants have family responsibilities and provide financial support to their parents.

The lawyer emphasised that the accused had chosen to plead guilty at the earliest opportunity, thereby saving judicial time and public resources. On that basis, the court was urged to consider a more lenient penalty.

After hearing submissions from both sides, Magistrate Tengku Intan Nadiah delivered her ruling.

The court ordered each defendant to pay a fine of RM4,000. In the event of non payment, they would face a three month prison sentence in substitution of the fine.

Fraudulent cryptocurrency investment schemes have become increasingly common in recent years as scammers exploit public interest in digital assets and online trading opportunities. Such operations frequently promise unrealistic returns, utilise fake trading platforms, and rely on aggressive telemarketing tactics to persuade victims to transfer funds.

Authorities worldwide have repeatedly warned investors to verify the legitimacy of investment platforms, regulatory registrations, and trading services before committing funds. Experts also advise potential investors to exercise caution when approached through unsolicited phone calls, social media advertisements, or messaging applications promoting guaranteed investment returns.