Imagine losing everything – your home, your savings, your children's future – all because of a lie. That's precisely what happened to one Singaporean single mother, highlighting a terrifying trend: cryptocurrency scams. But here's where it gets controversial... are these victims simply naive, or are the scammers becoming too sophisticated for even the savviest investors to detect? This is the story of how a crypto cop intervened just in the nick of time.
In a heart-wrenching case that underscores the devastating impact of online scams, a single mother in Singapore, believing she had found her soulmate, tragically liquidated her assets. Driven by the promise of a shared future, she sold her apartment and transferred her entire life savings, a staggering $120,000, into a cryptocurrency wallet controlled by a scammer.
Unbelievably, despite never having met her online “lover” in person or even having a simple video call, she was ready to uproot her life completely. She packed her belongings, withdrew her two children from school, and prepared to embark on a new chapter abroad with this phantom partner. And this is the part most people miss... the emotional manipulation involved is often far more damaging than the financial loss.
Just a day before her scheduled flight, Assistant Superintendent of Police (ASP) Lee Hua Sheng, a member of the Anti-Scam Command’s (ASC) specialized Crypto Tracing Team (CTT), intervened. Acting on a tip from her bank, which had flagged suspicious transactions, ASP Lee urgently requested her presence at the ASC office, suspecting she was being targeted by a scam. The bank’s vigilance prompted ASP Lee to reach out, only to find the woman reporting that her “lover” had suddenly stopped responding to her messages – a classic red flag.
The CTT, a relatively new unit established just eight months prior in March, was specifically created to combat the growing threat of scam proceeds being laundered through virtual assets like cryptocurrency. This team plays a vital role in a landscape where digital currencies are increasingly exploited by criminals. Almost a quarter of the staggering $1.1 billion lost to scams in Singapore in 2024 involved cryptocurrency. To put that into perspective, one particularly devastating case saw a single victim lose $125 million in cryptocurrency funds through a sophisticated malware-enabled scam. That's more than some small countries' GDP!
ASP Lee describes his role within the CTT as being a “human firewall,” tasked with identifying scams and safeguarding potential victims. This involves not only technical expertise but also a crucial element of empathy and understanding as he navigates the emotional distress of those who have been deceived.
ASP Desmond Chia, the officer-in-charge of the CTT, explained that the team's formation was a direct response to the increasing adoption of cryptocurrency worldwide. “Globally, people are more attuned to cryptocurrency, and it’s a trend which scammers have also noticed,” he stated. Cryptocurrency offers scammers an efficient and often untraceable method of laundering illicit funds, bypassing the traditional banking system. This makes it significantly harder for law enforcement to recover stolen assets.
Both officers shared these insights with reporters at the Police Cantonment Complex on November 6th, highlighting the growing concern surrounding cryptocurrency-related crime. In the first half of 2025 alone, more than $81.6 million in cryptocurrency was lost to scams in Singapore. The most commonly used cryptocurrencies in these scams were Tether, Bitcoin, and Ethereum, reflecting their widespread popularity and liquidity.
ASP Lee recounted the details of his interaction with the single mother, explaining that she had met her “lover” online and had been communicating with him via WhatsApp messages and voice calls for a year. Crucially, she had never actually seen his face. “I conducted a blockchain analysis and traced the funds,” ASP Lee explained. “We saw the funds move out of her wallet and being laundered through multiple scam-linked addresses.” A blockchain, for those unfamiliar, is essentially a digital ledger that records cryptocurrency transactions, making it possible to track the movement of funds.
“Presenting the findings to her was one of the hardest things I’ve ever done,” ASP Lee admitted. “The moment the harsh truth hit her, the scammer’s silence and avoidance suddenly made sense (to her), and she burst into tears.” He spent approximately three hours talking to the woman, helping her to understand the gravity of the situation and the even greater danger she had narrowly avoided.
“If she had gone ahead and flown to a foreign country, she would have been stranded with her two young children, with no money,” ASP Lee emphasized. He later contacted the woman’s family and provided guidance on how they could offer her support during this incredibly difficult time. “She’s in a better state now, trying to recover from this episode and move on with her life,” he shared.
ASP Lee pointed out that fraudsters often exploit victims’ lack of knowledge about cryptocurrency. For example, scammers may masquerade as investment teachers or mentors, luring victims into investing in fake platforms. This deception can be incredibly convincing, making it difficult even for informed individuals to discern the truth.
Officers within the CTT receive specialized training to focus on real-time operations, allowing them to intervene and stop scams while they are still in progress. Their daily responsibilities include conducting live blockchain analysis to track wallet movements, coordinating the freezing and recovery of funds, and engaging directly with potential scam victims to prevent further transfers of money to fraudsters.
ASP Chia explained that when selecting officers for the CTT, a keen interest in cryptocurrency is a crucial requirement, given the technical complexities involved in crypto-tracing. One key difference between tracing cryptocurrency and tracing physical funds lies in the transparency of cryptocurrency transactions. Cryptocurrency transactions are recorded on a blockchain, which is more readily accessible than traditional bank transactions, where information requires direct access from each bank involved.
“If we have a fund transfer from DBS to UOB and then to OCBC, we have to go to all three banks to get information about the movement of funds,” ASP Chia explained. “Once cryptocurrency is transferred into the blockchain, we can trace its movement from one wallet to another, as long as it stays within the blockchain.” However, identifying the owners of these crypto wallets can be challenging, as anyone can create them anonymously.
Furthermore, blockchain transactions are irreversible, placing immense pressure on CTT officers to act swiftly before transactions are finalized. In the first half of 2025, the ASC successfully recovered more than $56.7 million in scam losses, including $39.7 million in non-cryptocurrency and $17 million in cryptocurrency.
ASP Chia noted that the CTT is actively working on developing protocols with its partners and international law enforcement agencies to expedite the cross-border recovery of funds. They are also exploring automation to streamline their work processes and leveraging enhanced analytics for faster wallet identification. But here's the controversial part: should cryptocurrency exchanges be doing more to prevent these scams from happening in the first place?
As cryptocurrency usage continues to expand, ASP Lee urged the public to educate themselves thoroughly before investing. “Don’t invest blindly, and invest only what you can afford to lose,” he cautioned. “So many times we’ve seen victims pour their life savings (into investments), and that’s very dangerous.”
Now, it's your turn. What are your thoughts? Do you believe the authorities are doing enough to combat cryptocurrency scams? Or do you think individuals need to take more responsibility for their own financial decisions? Share your opinions and experiences in the comments below!
