Malaysia Pair Face Caning for Alleged $37K Bitcoin Fraud

Two Malaysians accused of running a scam involving bitcoin could soon face physical punishment as dictated under the country's stiff penal code.

According to a report by the Malay Mail on Tuesday, Reduan Ismail and Adan Ibrahim are alleged to have defrauded three women of more than 150,000 Malaysian ringgits (around $37,000). If convicted the pair face a maximum of 10 years in prison, caning and fines.

Touting their purported bitcoin investment scheme "Actionmode," it is alleged the pair met with one of the women on May 8, 2020 and two others on July 26, promising a 20% return on investment continuously over a seven-month period.

The two men, who both run other businesses, allegedly persuaded the women to invest in bitcoin when they otherwise may not have during their meetings at the Hotel Casuarina Meru in Ipoh, Perak.

See also: US Man Pleads Guilty to Money Laundering Charges Involving $13M in Bitcoin

According to the lawyers representing Ismail and Ibrahim, the pair's business accounts have been frozen under the country's Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Bail has been set at 2,500 Malaysian ringgits ($618) for each charge, while the court is expected to hear the case on March 9, according to the report.