Major Recovery from Collapsed Crypto Scam
Bangladesh’s Criminal Investigation Department (CID) has successfully recovered approximately $3.6 million (Tk 44.14 crore) linked to the MTFE (Metaverse Foreign Exchange) Ponzi scheme, per recent reports from The Daily Star and other local outlets. The funds, primarily in USDT, were traced to the OKX cryptocurrency exchange and repatriated through international cooperation, including assistance from the US Secret Service, FBI, and DOJ, per. The money was deposited on March 14, 2026, via Asset Reality Limited and routed through JPMorgan Chase Bank to Sonali Bank’s head office in Dhaka, per.
Masud Al Islam and MTFE’s Ponzi Operations
MTFE, fronted by Masud Al Islam, a Bangladeshi national hiding in Dubai, operated as a multi-level marketing (MLM) crypto Ponzi scheme promising high returns through fake forex and cryptocurrency trading. Launched around 2022, it collapsed in August 2023, leaving thousands of Bangladeshi investors with heavy losses. Islam has a history of running similar scams from Dubai, often using aggressive recruitment tactics, per. Total victim losses remain unconfirmed but are believed to be significantly higher than the recovered amount, per. CID investigations used blockchain analysis tools to trace the funds, leading to OKX’s cooperation in the repatriation process, per.
Funds to Be Distributed via Court Process
The recovered $3.6 million will be held in a dedicated account and distributed to verified victims through a court-supervised process, per. Individuals cannot claim funds directly; claims must be submitted with supporting documents for transparency and accountability, per. A senior CID official noted challenges in full restitution due to the scale of the fraud and the complexity of tracing all victims, per. This marks a positive development in Bangladesh’s efforts to combat crypto Ponzi schemes, though Masud Al Islam remains at large in the UAE.
Broader Context and Investor Caution
MTFE is one of several high-profile MLM crypto scams targeting South Asian investors, often promising passive income through fake trading apps. The recovery highlights successful international collaboration but also underscores the difficulty in fully compensating victims and apprehending perpetrators operating from abroad. Similar schemes have caused billions in losses globally. Investors should remain vigilant against platforms promising unrealistic returns and verify legitimacy through official regulatory bodies.
Bitcoin (BTC) and the broader crypto market remain unaffected by this local recovery, with BTC trading around $113,000 as of late March 2026.
