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Crypto Fraud Rises While International Authorities Strain to Catch Up

Crypto Fraud Rises While International Authorities Strain to Catch Up

Bitget-RWA2025/11/04 16:11
By:Bitget-RWA

- Singapore and Malaysia intensify cross-border crackdowns on crypto scams, seizing $150M assets linked to Cambodian syndicates and pursuing regional fugitives. - ZachXBT ranks Nigeria, India, Canada, UK, and Russia as top jurisdictions for crypto fraud recovery challenges due to legal delays and frozen assets. - Meta deploys AI tools to combat WhatsApp/Messenger scams, aligning with Singapore's facial recognition mandates under the Online Criminal Harms Act. - Global fraud surges include $500M telecom loa

Authorities in Singapore and Malaysia have ramped up their crackdown on cross-border cryptocurrency scam operations, as global law enforcement faces rising fraud-related losses. Singaporean police confiscated assets exceeding S$150 million tied to a Cambodian fraud ring, focusing on Prince Group chairman Chen Zhi and his network in a large-scale operation. The investigation, which involved freezing six properties and several financial accounts, highlights the vast reach of international scams in Southeast Asia, according to an

. At the same time, Malaysian officials initiated a countrywide search for seven nationals linked to the same syndicate, reflecting the region’s joint efforts to tackle cybercrime, as reported by .

Blockchain analyst ZachXBT has identified Nigeria, India, Canada, the UK, and Russia as the most difficult places for crypto scam victims to seek justice, according to

. In these countries, slow legal processes, asset freezes, and bureaucratic obstacles often leave investors with few options. For example, in Canada, the "Crypto King" case—where $40 million was stolen from investors—shows deep-rooted issues, with only $3 million recovered despite the perpetrator spending $16 million. The UK faces comparable problems, with crypto scam losses hitting £97.7 million in the first half of 2025, further complicated by lengthy investigations and rare prosecutions, ZachXBT observed.

Crypto Fraud Rises While International Authorities Strain to Catch Up image 0

Meta has rolled out new features to fight scams on WhatsApp and Messenger, such as warnings during screen sharing and AI-driven chat monitoring. These updates are designed to prevent scammers from pretending to be bank staff or government officials to steal sensitive data, The Straits Times reported. The changes come after Singapore’s Online Criminal Harms Act, which requires stronger facial recognition and prioritizes reports of impersonation scams, as noted by The Straits Times.

The global problem is not limited to Southeast Asia. In the United States, Bankim Brahmbhatt, a telecom executive of Indian descent, faces allegations of masterminding a $500 million loan scam by fabricating accounts receivable, Gulf News reported. BlackRock’s private credit division, HPS Investment Partners, is working to recover money moved to offshore accounts in India and Mauritius. Meanwhile, Canada’s Immigration Department has suggested mass visa cancellations for Indian and Bangladeshi nationals due to increasing fraud, drawing criticism from civil rights advocates, according to Business Standard.

Crypto trading platforms are also under the microscope. A major hack on Halloween targeted a protocol with $451 million in total value locked (TVL), contributing to a record $2.17 billion in crypto thefts in 2025, Yahoo Finance reported. KuCoin, on the other hand, has set itself apart as a security frontrunner by implementing verifiable transparency standards, including the Cryptocurrency Security Standard (CCSS), as detailed in a

.

With scams becoming more sophisticated, global collaboration is increasingly vital. South Korea and China have recently entered into agreements to fight online scams and voice phishing during the APEC summit, Yonhap reported. Still, as losses grow and legal systems struggle to keep up, victims in places like Nigeria and Canada are more frequently resorting to self-help or giving up on recovery, ZachXBT cautioned.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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