KUALA LUMPUR: A Lawyer representing eight Chinese nationals allegedly robbed of cryptocurrency in Kajang in February has questioned the delay in investigations into 12 policemen who were arrested as suspects, alleging there could be interference to suppress the case.
The lawyer, identified only as Charles, said he would take the case to the Malaysian Anti-Corruption Commission (MACC) if there was no word from the police.
“If there is interference in the investigation simply because the suspects are policemen, then we will have no choice but to lodge an official complaint with MACC,” he told the New Straits Times.
He said the prolonged wait for the outcome of investigations was becoming increasingly difficult to justify, especially since the case had been under probe since February.
Charles said technical and digital forensic reports in such cases would typically take between one and two months to complete.
“Why is this taking so long? Technical reports do not usually take forever.
“In most cases, these reports can be completed within one or two months, but here, after several months, there appears to be no conclusion in sight.”
Charles also alleged police had made little effort to update him or his clients on the developments in the case since the victims returned to China for Chinese New Year.
“My clients returned to China and have come back to Malaysia twice since the incident.
“The only time the police contacted me was to ask who owned the bungalow involved in the case.
“I think they are trying to avoid me at all costs because there have been no updates at all regarding my clients’ case.
“I am the one constantly contacting them to ask for developments,” he said.
Earlier yesterday, Selangor police chief Datuk Shazeli Kahar said investigations into the case were pending technical reports.
“The status of the case remains the same and we still need a little more time as it involves technical reports.
“If there are any developments, we will inform later,” he told reporters in Shah Alam.
Shazeli also said the 12 police suspects were being monitored by their supervisors and that they have been removed from active duty pending the outcome of the probe.
Meanwhile, Universiti Sains Malaysia Cybersecurity Research Centre researcher Professor Dr Selvakumar Manickam said cryptocurrency-related investigations were complex due to the anonymous and decentralised nature of digital assets.
“The whole idea of cryptocurrency is anonymity and privacy, leading to difficulty in traceability.
“For example, if you look at the WannaCry ransomware attacks, victims were asked to pay in bitcoin to regain access to their files.
“They were not asked to transfer money into a bank account or anything centralised that would leave a conventional transaction trail,” he said.
Selvakumar said cryptocurrencies had become popular among criminal syndicates, including those involved in money laundering, because the transactions had limited traceability.
“The nature of crypto allows criminals to carry out their illicit and illegal activities without being traced,” he said.
However, he said tracing cryptocurrency transactions was not impossible.
“It is possible for police to write to cryptocurrency exchanges because the transfers may often still be traced on the blockchain.
“But identifying the owner of a wallet may require cooperation from exchanges and forensic analysis, which is very complex, time-consuming and, in many cases, may fail,” he said.
Selvakumar said cooperation from foreign exchanges often depended on legal jurisdictions and whether the exchange operators were willing to divulge user information.
“In cyberspace, if there is a will, there is a way, but the effort, time and money will determine whether it is worthwhile.
“Whether an exchange will divulge personal details also depends on legality and jurisdiction. It is very complicated.
“It is not impossible, but it is extremely difficult,” he said.
He said Bukit Aman had the technical capability to handle such investigations through the Cryptocurrency Analysis Laboratory established in 2022.
“Police actually have a Cryptocurrency Analysis Laboratory exactly for this kind of crime.
“Of course, anyone with technical know-how can carry out tracing, but only the police have the legal basis to communicate and request information from the exchanges.
“The challenges are not so much technical expertise, but rather identifying the individuals controlling the wallets, obtaining foreign cooperation and recovering assets after rapid laundering,” he said.
The case drew public attention after eight Chinese nationals claimed they were forced to transfer USDT50,000 in cryptocurrency after police raided a rented bungalow in Country Heights, Kajang, on suspicion of scam-related activities.
In February, the New Straits Times reported that 12 policemen, including four officers from the federal Commercial Crime Investigation Department, had been arrested over the alleged gang robbery.
Those detained included an assistant superintendent of police, an inspector, a sergeant, six corporals, two lance corporals and a constable, aged between 24 and 47.
The arrests followed a report lodged by a 31-year-old Chinese market surveyor, who claimed he and seven friends were forced to transfer cryptocurrency to secure their release after their rented bungalow in a gated community in Country Heights was raided.
A team from the district commercial crime unit raided the double-storey bungalow under the guise of an anti-scam operation codenamed “Op Taring”, suspecting the occupants of involvement in online fraud activities in Cambodia.
However, checks on their electronic devices and passports allegedly revealed no evidence of criminal activity or travel records to Cambodia.
The group reportedly told police they were market surveyors employed by a China-based company. The victims allege they were threatened with arrest and immigration action unless they paid RM400,000.
After negotiations, the suspects allegedly agreed to accept USDT50,000 in cryptocurrency, which was transferred to a crypto wallet address the suspects provided.
Police are investigating the case under Section 395 of the Penal Code for gang robbery.
