Digital Assets at Center of Multi-Million Ringgit Scandal

A high-profile investigation into the alleged embezzlement of sukuk funds has taken a digital turn, as the Malaysian Anti-Corruption Commission (MACC) revealed that approximately RM11 million was converted into digital currency for personal use.

The investigation centers on a prominent individual bearing the “Tan Sri” title, who is suspected of misappropriating funds intended for public infrastructure.

At a press conference, MACC Chief Commissioner Tan Sri Azam Baki stated,

“The funds are believed to have been converted into digital currency for personal use. However, we are still tracing how the money was withdrawn and utilized.”

He emphasized that the use of these funds was unrelated to the MEX II highway project and that documentation of the currency exchange has been secured.

Expanding Investigation: Frozen Accounts, Arrests, and Asset Seizures

The MACC’s probe has grown in scope and scale. To date, statements have been recorded from 55 witnesses, nine individuals have been arrested, and 14 personal accounts, alongside eight company accounts—collectively involving RM156 million—have been frozen as part of the ongoing investigation.

At least 10 more witnesses are expected to be called to assist as the case progresses. Authorities have also seized a trove of luxury assets estimated at RM32 million, including designer handbags, jewellery, high-end vehicles, luxury watches, cash, and a lavish residence—all believed to belong to the highway concessionaire under investigation.

Premium alcoholic beverages valued at RM3 million were also confiscated, and it is suspected that approximately RM20 million of the sukuk funds were spent on gambling activities.

In addition to domestic assets worth RM141 million already seized, MACC is currently tracing RM15 million in assets abroad linked to the case.

Among the seized items are RM4.5 million in personal bank accounts, RM33 million in company accounts, luxury condominiums and land worth RM24.5 million, RM26 million in luxury watches, nine luxury cars valued at RM7.65 million, and jewellery and diamonds worth RM10 million.

Other assets include RM6 million in designer handbags, gold bars, statues, gold coins, and four horses valued at RM400,000.

Gambling and Further Misuse

When questioned about the alleged use of sukuk funds for gambling, Azam Baki noted that such activities were believed to have occurred around the time the funds were disbursed.

“It may have been used in casinos, but I can’t go into detail. I don’t gamble myself, so I wouldn’t know,” he remarked.

The investigation is also probing other potential misuses, including the purchase of luxury goods and the possible laundering of funds through digital currency channels.

The MACC is working to trace the flow of RM11 million in digital assets and determine how these funds were ultimately spent.

Azam Baki confirmed that the investigation is expected to be completed within the next two months, with any significant developments to be announced as they arise.

For now, there is no immediate need to summon the individual with the “Tan Sri” title for further questioning.

The case highlights the growing intersection of financial crime and digital assets in Malaysia, underscoring the need for robust anti-money laundering and anti-corruption measures in the digital age.