According to reports from BBC and Kompas on July 14, 2026, Malaysian police arrested 335 individuals operating cryptocurrency and romance scam syndicates from 32 locations within the largely vacant Forest City development in Johor Bahru. Built by China’s Country Garden and Danga 88, the mega-project fell victim to pandemic disruptions, leaving occupancy at roughly one percent and creating an isolated environment that underground networks exploited.
The Rise and Stall of a Malaysian Mega-Project
Launched in 2016, Forest City was envisioned as a futuristic, environmentally friendly special financial zone spanning 14 square kilometers of reclaimed land near Singapore. Promoted by Country Garden and local partner Danga 88—a private firm controlled by Malaysian Sultan Ibrahim Iskandar—the development aimed to house up to 700,000 residents with luxury hotels, golf courses, and marina-style apartments, according to local reports. However, the project faced regulatory friction regarding construction permits just six months after breaking ground. Later, pandemic-era economic pressures and a massive debt burden severely restricted financing options. Consequently, developers completed only 15 percent of the overall master plan, leaving towering skyscrapers and paved roads largely devoid of daily foot traffic.
Police Raids Uncover Cross-Border Crypto Scams
On-the-ground enforcement actions in mid-July 2026 revealed that the deserted towers had transformed into a base for illicit operations. According to Johor Police Chief Ab Rahaman Arsad, authorities raided 32 separate locations—including 27 apartments across five floors of a residential tower and five detached bungalows—arresting 335 suspects. Seized assets totaled roughly one million ringgit, or about Rp 4,3 billion, alongside 313 computers, 1,557 mobile phones, 17 laptops, and 10 modem units. Investigators noted that the detained individuals included 309 Chinese nationals, 19 Indonesians, three Malaysians, and four Myanmar nationals. Police are currently collaborating with Interpol to track down the higher-level architects of these international investment and romance fraud rings.
Did you know?
According to resident and sales agent Kevin (a pseudonym cited by the BBC), sales representatives were instructed by management to tell prospective clients that the area housed thousands of residents, whereas the actual populated count sat well below thousands of people.
Why Ghost Towns Attract Global Criminal Syndicates
Security experts emphasize that low occupancy rates and sparse oversight create ideal conditions for organized crime. John Wojcik, an analyst at blockchain forensics firm TRM Labs, stated that Forest City presented an inviting target because the upscale, master-planned environment never materialized its promised population. Wojcik added that modern criminal networks function increasingly like structured multinational corporations equipped with dedicated IT departments, laundering specialists, and human resources teams. Furthermore, regional experts connecting reports from Kompas and Indowarta suggest that these operations in Malaysia represent a secondary wave of actors displaced from stringent law enforcement crackdowns in Cambodia, where similar multi-billion-dollar scam compounds faced intense government pressure.
Frequently Asked Questions
What was the original plan for Forest City in Malaysia?
According to initial developer projections from 2016, Forest City was designed as a high-end, eco-friendly smart city and special financial zone intended to accommodate roughly 700,000 residents across reclaimed islands near Singapore.
/data/photo/2024/04/05/660f6fe998e8c.png "Photo: kompas.com")
How many people currently live in Forest City?
Local estimates and resident accounts indicate that actual occupancy has dwindled to roughly 1 percent of its targeted capacity, leaving fewer than thousands of people residing in the massive development.
What types of illegal activities were discovered during the July 2026 raids?
According to Johor police reports, the raided locations served as hubs for cryptocurrency investment scams and romantic fraud operations targeting victims located outside of Malaysia.
Which companies originally developed the project?
The mega-project was a joint venture between major Chinese property developer Country Garden and Danga 88, a private firm controlled by Malaysian Sultan Ibrahim Iskandar.
What are your thoughts on the transformation of ambitious urban developments into criminal outposts? Share your perspective in the comments below, explore our latest international property investigations, or subscribe to our newsletter for weekly updates.