Johor police arrested 335 individuals in Forest City on July 15, dismantling two online scam syndicates involved in cryptocurrency fraud and “love scams” targeting victims in China and Indonesia, according to multiple sources.
Crackdown Details
Johor police chief Ab Rahaman Arsad revealed that 309 Chinese nationals, 19 Indonesians, four Myanmar citizens, and three Malaysians were among those arrested during raids on 27 apartments and five bungalows. The syndicates operated under fake recruitment agencies and cryptocurrency investment schemes, with 159 suspects expected to face charges. Authorities seized 313 computers, 1,557 mobile phones, 17 laptops, and a Mazda CX-8 SUV, as reported by CNA and AsiaOne.
This operation had successfully crippled two different syndicates that carried out online scam activities such as fake cryptocurrency investment offers and ‘love scams’ targeting victims from abroad,
Rahaman stated, per Malay Mail. The raids followed the shutdown of Network School, a digital nomad hub, after its license was revoked over regulatory breaches.
Rahaman said the two syndicates were not linked to Network School, which was ordered to cease operations at its Forest City premises last week after state authorities revoked its business license. The police raided 27 apartment units and five bungalows in Forest City, a sprawling integrated waterfront development, Rahaman said, as reported by Utusan Malaysia. This operation had successfully crippled two different syndicates that carried out online scam activities such as fake cryptocurrency investment offers and ‘love scams’ targeting victims from abroad, especially China and Indonesia,
he said, as quoted by Malay Mail.
The two syndicates were believed to have employed different methods to target victims abroad, according to the Johor police chief. The first syndicate comprised 279 suspects who allegedly carried out love and crypto scams, according to Rahaman. The second syndicate involved 56 suspects, of whom 54 were foreigners. They allegedly impersonated recruitment agents and offered fake crypto investments, Free Malaysia Today reported. Some of the suspects did not possess valid travel documents.
The operation was carried out on July 15, targeting two areas identified as hubs for call centers running online fraud activities, Rahaman said in a video posted on Facebook on July 28. The apartments were all booked under a company name, while the bungalows were under individual names. We are in the process of tracking them down,
Rahaman added. Equipment and devices worth about one million ringgit (S$316,116) that were used to carry out fraud activities were also seized.
Reputational Consequences
Criminologist P Sundramoorthy, who is with Universiti Sains Malaysia, warned that the scam operations and Network School’s closure could harm Forest City’s reputation, affecting property values, business confidence, and investor interest.
Sundramoorthy noted, It can affect property values, business confidence, tourism, investment decisions, and the willingness of people to live and work there.
The SFZ is expected to surpass its RM2 billion investment target this year, after attracting more than 250 enquiries from prospective investors including financial institutions, family offices, and business services firms.
The crackdown highlights challenges for Forest City’s revival. While the SFZ’s investment targets remain on track, the repeated scandals risk deterring foreign investors. The development has been trying to reinvent itself as an investment destination, anchored by its status as a Special Financial Zone (SFZ). Residents, property owners, and experts told CNA the episodes are a fresh setback for Forest City as it tries to rehabilitate its image and attract investments.
The arrests underscore the scale of organized fraud in the area, with one syndicate alone comprising 279 suspects. Authorities continue tracking assets and individuals linked to the operations, as the development seeks to rebuild its image amid ongoing scrutiny. The police chief emphasized that the fraud activities were carried out through investment and love scams, targeting victims from abroad, particularly from China and Indonesia.