After receiving a large profit from investing Rp 1.2 billion (US$80,200) in crypto-agency Algopacks, she sold her house for Rp 5 billion to top her investment.  

“It’s an investment for the future; you don’t have to do anything about it, just let it be and see the results in 20 years,” Bella told The Jakarta Post, recounting the moment she got hooked in.

But after three months, the agency, which was introduced to her by a friend, failed to make profit payments, and she cancelled the plan to add to her investment.

Established in 2018, Algopacks had offered various forms of crypto products with enormous returns to hundreds of people in an alleged Ponzi scheme. While they issued at least three known coins, the large profits investors received were suspected to come from new, unaware investors.    

The Makassar District Court is currently running a trial of Sulfikar, a leader of Algopacks who allegedly has masterminded the fraud that had caused billions of rupiah in losses to hundreds of people.   

Algopacks offered three investing options -- crypto mining, with the minimum investment of Rp 800 million per unit; depositing certain amount of money with a guaranteed 300 percent profit over the period of three years; or outright swapping the crypto coins they have with the coins Algopacks released.

Up until now, the three known coins launched by Sulfikar are listed on crypto-exchange-portal CoinTiger, namely Bitalgo (ALG), YFA Finance (YFA) and AVCCoin (AVC). Sulfikar has also allegedly tried to launch other coins, namely YFC, along with several future projects on the way.

Bella said her money invested in Algopacks was probably lost forever.

“I was nearly broke. […] Due to [profit] withdrawing problems that were happening, I held the [Rp 5 billion investment] fund,” Bella said, feeling grateful about her decision to not invest the money too hastily.

Franky Harlindong, 59, another victim that had reported Algopacks to the police, said he was lured to join the crypto agency because the agency representatives sounded convincing in pitching the investment products.

“We were taken to meetings in fancy hotels and restaurants; they also gave us a neat presentation. […] It was cruel, I knew a victim whose parents died because he didn’t have any cash for medical care because he spent hundreds of millions on the AI [project],” said Franky.

He said Sulfikar’s followers encouraged people to invest everything they have in the Algopack projects.

While Sulfikar is already in prison, the exact scale of the Algopack operation and the total number of victims and the money that they have lost are still largely unknown.

At least 40 people reported Algopacks for similar cases to the Makassar Police Department. But despite the multitude of reports, Sulfikar’s case was built on a specific report from Jimmy Chandra who lost Rp 5.9 billion in the scheme. Other cases at the police are still under investigation.

“Just from us [40 victims who have formally reported], it’s at least [Rp] 15 billion,” said another victim, Eileen Sidjaya, 41. The Makassar resident estimated there are at least 200-400 more victims in the city alone, and there are many others in cities all over Indonesia.

Rudy Wijono, the 53-year-old victim from Tulungagung, East Java, told the Post that there were about 3,000 victims in Madura, and many more in surrounding cities like Blitar, Malang and Banyuwangi.

According to the court website, Sulfikar is charged under Article 372 and 378 of the Criminal Code (KUHP) for fraud, which carries a four-year maximum sentence upon conviction.

Eileen and Rudy said Sulfikar is very well-connected and has a lot of cash compared to the victims.

“Sulfikar has countered the reports about his crime by reporting the victims for defamation. The victims are afraid, they no longer have any money. [...] They have debts here and there [due to the scam] and they’re afraid to stand up against the defamation case,” said Eileen.

Abdul Salam, a cyberlaw expert from the University of Indonesia, said authorities should use the Electronic Information and Transactions (ITE) Law instead of KUHP to charge suspects in crypto cases. “[Police investigators can use] Article 28 of [ITE Law], the fine is Rp 1 billion and the maximum imprisonment is 9 years. This is more powerful than KUHP’s Article 372 and 378,” said Abdul.

Crypto expert Prathama Tjoeng said the government has a regulation in an attempt to control the crypto market. He is referring to the Trade Ministry Regulation No. 99/2018, which, albeit not comprehensive, is already "in the right direction". The regulation defines cryptocurrency as a lawfully recognized futures asset and as a result, it is overseen by the Commodity Futures Trading Regulatory Agency (Bappebti).

Sudaryatmo, a member of the Indonesian Consumers Foundation (YLKI), said that consumer protection within the context of crypto investment is unique, particularly due to how the principle of "high-risk, high-reward" is dictating the course of the game.

“Losing is a part of investment. A loss is only relevant to the consumer-protection context when there is an indication of false promises. But when it’s caused by market risk, that’s just how investment works,” he said.

He also encouraged people to educate themselves before investing in crypto assets.

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