What started as a flurry of too-good-to-be-true crypto offers ended in a quiet Food City parking lot in Halls, where Knox County detectives say a months-long investigation led to the takedown of a sprawling cryptocurrency investment scam that hit local residents and businesses for roughly $1.6 million. Detectives say they staged a cash pickup at the grocery store, then moved in on a suspected courier as part of an operation that stretched far beyond East Tennessee.
Investigators report that the ring relied on slick online ads and encrypted messaging apps to reel in victims, then shifted to in-person cash handoffs and couriers to extract larger and larger payments. The arrest, according to the Knox County Sheriff’s Office, came after coordination with federal partners who helped trace financial and digital footprints across state lines and overseas.
Detective Wayne Doster led the case, connecting polished Facebook ads and bogus investment websites to people who traveled to Knoxville to collect bundles of cash. Two local businessmen alone lost around $500,000, and Knoxville-area victims and others together reported losses of about $1.6 million. As reported by Knox TN Today, most victims were in their 50s and 60s, and some took on heavy debt before the scheme finally collapsed.
Fraud on the rise nationwide
The Knoxville case is playing out against a national backdrop where scammers are clearly on a hot streak. Federal Trade Commission data show consumers reported more than $12.5 billion in fraud losses in 2024, with investment scams alone accounting for about $5.7 billion and cryptocurrency-related losses around $1.4 billion. The agency also found that bank transfers and crypto payments produced the largest total losses, a pattern investigators say mirrors how the Knoxville operation moved money. Per the FTC.
How the scheme worked
State securities regulators say these scams often look convincing at first glance. Prospective victims might see professional-looking ads or highly polished trading platforms, then be steered to private messaging apps where fraudsters can manipulate screenshots, fake account balances, and pressure people to pour in more money. Tennessee’s investor guidance notes that scammers sometimes let victims withdraw small early “profits” to build trust, then suddenly block larger withdrawals and demand extra fees or supposed taxes, tactics investigators recognize from long-running cons. The state advisory urges people to treat unsolicited investment pitches with skepticism and to verify opportunities independently before sending a single dollar. Per the Tennessee Department of Commerce.
Arrests and evidence
After weeks of groundwork, detectives say they arranged a meeting with an alleged cash courier and arrested 29-year-old Lee Kah Poh, who they report traveled to Knoxville after moving through California and New York. “This was a very sophisticated cryptocurrency investment scam run by a group or syndicate in Malaysia, and it’s the most broad-reaching case I’ve ever worked on,” Doster told Knox TN Today. Investigators say they uncovered roughly 500 passport images on the suspect’s phone, tied related activity to multiple states, and worked with Interpol as they followed the trail. Poh faces multiple fraud and theft charges and is being held on a $1 million bond as the case moves forward in court.
What victims should do
Authorities say anyone who suspects they were targeted by a similar scam should save everything, including messages, screenshots, and transaction records, then contact law enforcement. The Knox County Sheriff’s Office directs callers to its Property Crimes unit and a dedicated tip line, and officials emphasize that people should not send more money to anyone who claims they can unlock or return lost funds. Per the Knox County Sheriff’s Office and the FTC’s consumer guidance…