US Charges Six Over Madagascar Crypto Scam Operation That Targeted Victims With Fake NFT Investments

The US Justice Department has announced indictments against Malaysian national Chui Kok Wa and five others for allegedly running a scam operation from Madagascar. Prosecutors say the group stole more than $516,695 from 74 cryptocurrency wallets belonging to victims in Maryland, Oregon, Nevada, Minnesota and other states, using fictitious NFT investment schemes.

According to the indictment, Wa worked with accomplices in China to coordinate and fund the scheme, which allegedly moved to Madagascar last year after law enforcement takedowns in Cambodia. An FBI unit travelled to Madagascar in August and gained access to more than 3,000 devices. Prosecutors say this revealed the detailed inner workings of the operation and linked victim reports in the US to scammers working from compounds in the capital, Antananarivo.

The investigation faced obstacles. Prosecutors said officers visited 13 scam compounds with Madagascar National Police but were stymied when they tried to interview suspects, and that numerous suspects were repatriated to China before the investigation was complete. The indictment also says investigators have struggled to separate human trafficking victims from people who were paid to run the scams. It is unclear whether Wa and the five co-conspirators remain in Madagascar.