Arrest over crypto 'recovery' scam

What happened

"Arrest" was one of Singapore's top Google searches after police said a 43-year-old man had been arrested on 21 October for allegedly cheating a 69-year-old friend of at least S$186,000. The friend had told him about money he lost in a cryptocurrency scam, and the man allegedly offered to help get it back. According to AsiaOne and Goody Feed, which cite the police statement, he was to be charged with cheating on 23 October. The allegations have not been tested in court.

How the alleged scheme worked

Over about 15 months, the man allegedly asked for money for purported legal fees, witness protection fees and other administrative charges, and later for further payments on the claim that the case could be heard in overseas courts. The victim reported the matter to police on 27 September, and officers from Clementi Police Division identified and arrested the suspect. If convicted, cheating carries up to 10 years in jail and a fine.

What a recovery scam is

A recovery scam targets people who have already lost money. The scammer promises to get the money back, then charges fees for the "recovery". The US FBI has warned about the same pattern. In an August 2025 public service announcement, its Internet Crime Complaint Center described fake law firms that contact crypto scam victims, claim to be partners of government agencies, cite agencies that do not exist and ask for payment in cryptocurrency or prepaid gift cards. The FBI stresses that the US government does not request payment for law enforcement services.

What is a stablecoin, and why it matters here

If you are asking what a stablecoin is: it is a crypto token designed to track a currency, usually the US dollar. USDT and USDC are the best-known examples, and the value of USDT is designed to stay close to one dollar, although this is not guaranteed. Like other blockchain transfers, a stablecoin payment cannot be reversed once it is confirmed, and the FBI lists requests for payment in cryptocurrency among its red flags. Money sent to a fake recovery agent in crypto is therefore very hard to get back.

Red flags to watch for

Singapore police urged people to be careful with anyone who claims to be able to recover lost money, and to verify requests for upfront payments, especially those described as legal, administrative or processing charges. Anyone who suspects a scam should contact their bank to report it and block fraudulent transactions, and file a police report. The FBI adds its own checks: be wary of unsolicited contact, ask for proof of identity and a licence, refuse to pay a third party for "secrecy", and keep records of every conversation.

Why it matters for payments

Recovery scams hit people twice, and in this case the second loss allegedly came from a friend. The warnings from Singapore and the US point the same way: treat any request to pay upfront to get lost money back as a warning sign, whether it is asked for in cash, by bank transfer or in crypto. Searching for a crypto card or a USDT top-up? Use only official apps and the addresses they show, never an address sent to you in a chat.

What it means for Odix Pay users

Odix Pay is not a crypto wallet, does not provide any crypto custody service, and does not operate as a crypto buy/sell, Bitcoin/BTC or crypto investment platform. If you top up with USDT or USDC where this is available in your country, copy the address from the Odix Pay app and send only on the network shown next to it, because blockchain transfers cannot be reversed. If you think someone is targeting you with a scam, stop paying, write to Odix Pay support through the in-app chat or info@odixpay.com, and report it to the police. Availability depends on your country, and fees are shown in the app. More stories in the Odix Pay newsroom.