The Criminal Investigation Department (CID) has recovered more than $3.6 million, equivalent to approximately Tk44.14 crore, in cryptocurrencies laundered abroad through the fraudulent online investment platform MTFE (Metaverse Foreign Exchange).
The platform had lured investors with promises of high returns via crypto and forex trading, the CID said in a press briefing on Monday.
The investigation stems from a complaint filed at Khilgaon police station (DMP) in August 2023 under the Multi-Level Marketing Control Act 2013 and the Digital Security Act 2018.
The complainant claimed to have lost around Tk2 lakh after investing in the MTFE app, though CID investigations revealed that hundreds of investors were defrauded of crores of taka.
MTFE operated as a cryptocurrency and forex trading platform, promising rapid and high returns.
Launched in Bangladesh in June 2022, it aggressively promoted its services through Facebook and YouTube, attracting users with the promise of easy earnings from home.
Investors were given virtual trading accounts showing deposited funds as digital dollars, which were entirely fictitious.
Profits and losses were artificially generated to gain users’ trust.
Initially, the scheme paid out small amounts to build credibility. However, by mid-2023, MTFE abruptly shut down operations and vanished.
The virtual currency in investors’ accounts proved non-existent, while the deposited funds were transferred to MTFE’s central wallet and then dispersed to various crypto wallets abroad, resulting in massive capital outflow from Bangladesh.
A portion of the stolen funds, approximately 3.6 million USDT (Tether), units of the Tether stablecoin which is designed to hold a value equal to $3.6 million was traced to a leading global cryptocurrency exchange OKX.
Using blockchain analysis tool Chainalysis Reactor, CID confirmed the funds were linked to the MTFE scam.
OKX’s legal team cooperated to return the funds through lawful procedures.
With international collaboration, CID began the recovery process. Following court approval, a joint account was opened at state-run Sonali Bank’s Malibagh branch to receive and safeguard the funds.
CID also signed a written agreement with UK-based Asset Reality Limited to convert the recovered cryptocurrencies into legal tender and transfer them to the Sonali Bank account.
Through this process, the total recovered sum of $3,622,998, equivalent to around Tk44.14 crore at current market rates, has been securely deposited in the government account.
According to CID’s press release, assistance from US authorities and Bangladesh-US diplomatic channels played a crucial role in recovering these funds in less than three years since the complaint.
The CID Cyber Police Centre (CPC) continues to investigate the case. Authorities are working to identify and compensate victims and recover the remaining funds laundered through MTFE’s Ponzi scheme.
