Before 3 KoinWorks Bosses Were Named Corruption Suspects, Victims Reported Alleged Fraud and Embezzlement

JAKARTA, KOMPAS.com - The top executives of the peer-to-peer lending company KoinWorks were first reported to the police before being designated as suspects and detained over alleged corruption.

The victims’ legal representative, Alwin, stated that 94 KoinWorks customers incurred losses due to alleged fraud amounting to Rp 40 billion.

Their report was registered under number LP/B/117/III/2023/BARESKRIM POLRI on 13 March 2023.

At that time, the customers were unable to withdraw their money. KoinWorks had previously reported the alleged fraud to Polda Metro Jaya with losses of Rp 365 million.

Subsequently, the customers were promised repayment within two years with 5% annual interest.

However, to this day, that promise has not been fulfilled.

“But it’s almost two years now, and it still hasn’t been realised. The principal capital hasn’t been returned, and the 5% annual interest hasn’t been paid either,” Alwin explained when contacted by Kompas.com on Thursday (7/5/2023).

It turns out that the issue is not just about fund repayment. According to Alwin, the victims were also allegedly deceived from the start with enticing offers.

Such as competitive returns, up to guarantees of fund protection and insurance.

“So our clients had previously approached KoinWorks, ‘hey, okay, you defaulted, but you said there was insurance, where is your insurance?’, there was none,” said Alwin.

Because KoinWorks’ admission of identity forgery by a customer named Michael Timothy was deemed suspicious.

“So when KoinWorks then reported MTH for fraud, using KoinWorks funds that were taken away with a fake ID, we question it—shouldn’t the ID have been checked at the beginning, not at the end. Why did they only find out at the end that the ID was fake?” said Alwin.

“We suspect that money flowed to people inside KoinWorks. Because if not, how could Rp 300 billion slip through,” he continued.