400 Victims Urge Labuan FSA to Take Action Against Company Operating RM104 Million Forex Scam

Nearly 400 victims of an investment scam are calling for the Labuan Financial Services Authority (Labuan FSA) to take decisive action against a company accused of operating an illegal forex investment scheme. The scheme has reportedly scammed investors out of more than RM104 million.

On Monday, over 50 victims gathered at the Labuan FSA office, urging the regulatory body to not only liquidate the company but also to pursue criminal charges against it.

One victim, who began trading with the company in 2016 after being invited by a friend, questioned how the company had easily obtained a license, enabling it to deceive investors into parting with millions of ringgit. The victim received returns from the company before 2023 when the payouts ceased and various excuses were provided.

Another victim, who claimed to have lost RM10 million since investing with the company in 2018, expressed frustration that no action had been taken despite multiple police reports filed nationwide since September last year.

Datuk Hishamuddin Hashim, secretary-general of the Malaysian International Humanitarian Organization (MHO), stated that MHO, representing the victims, had received complaints not only from Malaysia but also from Indonesia, Singapore, and Brunei. He noted that forex trading can only be carried out by companies licensed by Bank Negara Malaysia (BNM), and accused the company of using its money brokerage license to falsely present its investment scheme as regulated by Labuan FSA.

While Labuan FSA has dissolved the Labuan-based company, MHO is urging further action in accordance with criminal procedures.