A few years ago forex MLM Ponzi schemes were all the rage in Malaysia.

One of the top companies to dominate the space was
FX United
.

As is custom among Malaysian scams, FX United’s owners went to great lengths to project the company wasn’t Malaysian.

This saw the incorporation of United Global Holdings Limited in New Zealand, as well as inconsequential ties to the UK and Australia.

Eventually
New Zealand wised up to FX United
but by then the damage was done.

FX United would go on to collapse in early 2017, resulting in over $250 million dollars in losses.

Unknown to us, authorities in Malaysia continued to investigate FX United after its collapse.

That long-running investigation lead to the arrest of three admins last weekend.

Last Saturday Malayisan police carried out raids in four locations in Kuala Lumpur.

Three “Datuks” were arrested, as well as ‘
13 luxury vehicles, several branded watches and company documents
‘.

Police have also linked 38 bank accounts to FX United, which have since been frozen.

Two additional Datuk suspects, Pandeyan Maruthamuthu and his (Datin) wife, Gouri C. Faskuny, are wanted and on the run.

Malaysian police believe Maruthamauthu and his wife fled Kuala Lumpur to a “neighbouring country” the day after the arrests.

Malaysian police have
vowed
to go “all out” and track the scammers down.

Testament to the success of Malaysian forex scams, only 116 FX United victims have come forward to report $1.58 million in losses.

Police estimate FX United conned 70,000 investors out around $250 million dollars.

For those unfamiliar with the title, “
Datuk
” is ‘
a traditional Malay honorific title
‘.

Well, at least it’s supposed to be. As far as MLM in Malaysia goes, I’ve lost count of the times Datuk someone or the other is behind some of the country’s biggest scams.

Datuk, at least in my experience, might as well be an honorific synonym for “scammer”.

If I may offer some advice to our Malaysian readers: If the main selling point of a questionable MLM opportunity in Malaysia is “Datuk Someguy” is in charge, run.

Update 30th March 2018 –
Husband and wife suspects Pandeyan Maruthamuthu and Gouri C. Faskuny were
arrested trying to re-enter Malaysia
on Monday.

Assets belonging to the couple that have also been seized include

RM10.4 million worth of properties, including houses, a condominium, a shop lot and two factory lots belonging to the couple.

10.4 million MYR comes to about $2.6 million USD.

🤖 Quick Answer

What was FX United and why did it collapse?
FX United was a forex MLM Ponzi scheme that operated in Malaysia, incorporated as United Global Holdings Limited in New Zealand to obscure its Malaysian origins. The company collapsed in early 2017, causing over $250 million in losses to investors before authorities intervened and subsequently arrested three administrators involved in the fraudulent operation.

How did Malaysian authorities respond to the FX United scam?
Malaysian police conducted a comprehensive investigation into FX United following its collapse in 2017. This lengthy investigation culminated in raids and the arrest of three administrators responsible for operating the fraudulent scheme, demonstrating authorities' commitment to prosecuting those involved in the multi-million dollar Ponzi operation.

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