US indicts Malaysian national for Madagascar-based NFT investment scam

Indictment for NFT Investment Scam

The US Justice Department announced the indictment of Malaysian national Chui Kok Wa and five co-conspirators. They are accused of operating a scam that stole more than $516,695 from 74 cryptocurrency wallets belonging to victims in multiple US states through fictitious NFT investment schemes.

Operation's Relocation and Scope

The indictment states that Wa collaborated with accomplices in China to coordinate and fund the scheme. The operation relocated to Madagascar last year following law enforcement actions against similar activities in Cambodia. An FBI unit visited Madagascar in August, gaining access to over 3,000 devices and uncovering the inner workings of the scam.

Challenges in Investigation

During the investigation, US officers, alongside the Madagascar National Police (MNP), visited 13 scam compounds. However, the Justice Department reported that their efforts to interview suspects were "stymied" as Madagascar repatriated numerous suspects to China before the investigation concluded. The US has called for Madagascar's cooperation, including the extradition of the six charged defendants.

Madagascar's Actions

The Madagascar Ministry of Justice has not commented on the US requests but has publicly acknowledged its collaboration with China in extraditing hundreds of Chinese nationals involved in scam centers. Madagascar law enforcement arrested 400 people, including 40 Chinese leaders of the operation, but the FBI was not permitted to interview these leaders before their repatriation or release.

Uncertainty Regarding Defendants

The current whereabouts of Wa and the five co-conspirators in Madagascar remain unclear. The Justice Department did not provide further comments on this matter. FBI agents have also faced difficulties in distinguishing human trafficking victims from other individuals involved in the scam.