CID Recovers $3.6M MTFE Laundered Funds via Blockchain Analytics

In a landmark achievement for Bangladesh's cybercrime combat, the Criminal Investigation Department (CID) of Police has successfully recovered $3.6 million (over BDT 441.4 million) laundered through the fraudulent online platform MTFE (Metaverse Foreign Exchange).

At a press conference held  Monday noon (30 March)  at the CID headquarters in Malibagh, DIG Md. Abul Bashar Talukdar of the Cyber Police Centre (CPC) detailed the sophisticated recovery operation. Investigations revealed that MTFE began its operations in Bangladesh in June 2022, using aggressive social media advertising to lure investors with promises of high returns. While users saw digital dollar balances in their virtual trading accounts, the transactions were entirely fabricated, designed only to attract new capital.

After initially returning small amounts to build trust, the platform abruptly shut down in mid-2023, disappearing with billions of takas. The laundered funds were traced to various cryptocurrency wallets across international borders. Using advanced blockchain analytics tools, CID investigators identified approximately $3.6 million held in the international crypto exchange, OKX, and confirmed its link to the fraudulent scheme.

Following legal coordination with OKX’s legal team and a court order, a dedicated government account was opened at the Malibagh branch of Sonali Bank. In a strategic move, CID partnered with UK-based Asset Reality Limited to facilitate the legal conversion of the seized cryptocurrency into fiat currency. Consequently, a total of $3,622,998 was successfully deposited into the state-owned bank account.

The CID noted that this recovery stems from a case filed at Khilgaon Police Station in August 2023. While this $3.6 million represents a significant breakthrough, investigations remain ongoing to identify and recover the remaining laundered assets. Authorities are currently working on a process to identify victims and distribute the recovered funds under judicial guidance. This successful operation, blending international cooperation with cutting-edge technology, marks a turning point in Bangladesh's fight against transnational cyber fraud.

DBTECH/DHE/EK