Full Breakdown
Forest City’s Ghost Towers: Police Raid Uncovers Massive Crypto-Scam Hub
8/12/2026, 9:32:39 PM
Mid-July 2024 Police Raid
Malaysian authorities conducted coordinated raids on two alleged scam operations spread across 32 premises in the artificial island development known as Forest City. The operation resulted in the arrest of 335 individuals and the seizure of assets valued at roughly one million ringgit (about $245,000). Confiscated items included 313 computers, 1,557 mobile phones, 17 laptops and 10 modems. The detainees comprised 309 Chinese nationals, 19 Indonesians, three Malaysians and four Myanmar nationals.
Background & Context
Unveiled by Chinese developers in 2016, the $100 billion Forest City project was marketed as a “dream paradise for all mankind” and projected to house up to 700,000 residents on a 14-sq-km (3,400-acre) artificial island adjacent to Singapore. A decade later, occupancy is estimated at less than 1 % of the target, with fewer than 5,000 actual residents despite promotional claims of 23,000. The shortfall stems from a combination of the COVID-19 pandemic, China’s property downturn and tighter borrowing limits for Chinese buyers, leaving many high-rise units vacant.
Data & Statistics
| Metric | Figure (as reported) |
|---|---|
| Planned population | 700,000 |
| Actual residents (2024) | < 5,000 (? < 1 % of target) |
| Units occupied vs. advertised | 1 in 20 claimed vs. 1 in 5 observed recent activity |
| Arrests in July raid | 335 people |
| Nationalities arrested | 309 Chinese, 19 Indonesians, 3 Malaysians, 4 Myanmar |
| Assets seized | ~1 million ringgit; 313 computers, 1,557 mobile phones, 17 laptops, 10 modems |
Official Statements & Responses
Johor police chief Ab Rahaman Arsad said the force is cooperating with Interpol to locate the mastermind behind the operations. He emphasized that the raids are part of a broader effort to dismantle transnational fraud networks exploiting Malaysia’s real-estate developments.
Why It Matters
The Forest City raids illustrate how under-occupied, high-profile property projects can become fertile ground for sophisticated crypto-facilitated scams. Analysts note that such “flagship” locations provide modern infrastructure, large numbers of vacant units and international connectivity, allowing criminal syndicates to masquerade behind legitimate businesses. This professionalisation includes dedicated recruitment teams, IT departments and money-laundering specialists, blurring the line between organized crime and multinational-style enterprises. The incident also signals a possible shift in the global scam industry toward more white-collar, technology-driven operations that exploit vacant luxury housing for illicit gain.
Verbatim Quotes
- “In 2016 they described it here like the golden city; very, very beautiful,” — Jason Deng, a 56-year-old investor
- “The reality is that many of these organisations now resemble multinational corporations more than a traditional organised crime network or gang,” — John Wojcik, an analyst at TRM Labs
- “When we speak to clients or customers, the company teaches us to say 'we already have 23,000 residents living in this area',” — Kevin
- “Forest City reflects the conditions organised crime have been targeting for years - a flagship location marketed as a prestigious, luxury, master-planned smart city that never came close to fulfilling that vision,” — John Wojcik, an analyst at TRM Labs
