Police warn of crypto scam that swindled over MVR 2.9 million

Police have issued a warning over a sophisticated cryptocurrency scam that has defrauded victims of more than MVR 2.9 million, mostly targeting foreign workers in Maldives, especially Chinese nationals.

According to police, the fraud is carried out through deceptive cryptocurrency exchanges mainly involving Tether (USDT) by tricking local sellers and foreign buyers into believing they are conducting legitimate transactions.

Police explained how the scam works:

- Scammers approach local USDT sellers, convincing them to act as “assistants” in what appears to be a normal currency exchange. Sellers are given a digital wallet address for the transfer.

- At the same time, the scammer convinces a foreign national with Maldivian Rufiyaa (MVR) in cash that they are purchasing foreign currency, which will be deposited into their bank account.

- The foreign national meets the cryptocurrency seller and hands over the cash. After verifying it, the seller transfers USDT to the wallet provided by the scammer.

- But no money ever reaches the foreigner’s account. The scammer vanishes with the cryptocurrency, leaving both parties disputing ownership of the cash.

Police said both the seller and the foreign national usually file complaints against each other when the USDT fails to arrive.

Authorities urged the public to be “extremely cautious” when engaging in currency or crypto exchanges. They advised verifying the identity of all parties involved, avoiding unknown intermediaries, and never sending money or crypto to wallets or accounts of people not physically present.

Anyone approached with such offers or who suspects fraud is urged to report immediately by calling the police hotline 3322111, the National Emergency Call Center at 911, or by visiting the nearest police station.