Malaysian fashion influencer Vivy Yusof and her husband have denied charges of embezzling MYR8 million (US$1.8 million) from e-commerce startup FashionValet, which was backed by government-linked investors.
Vivy and Fadzarudin Shah Anuar, in August 2018, allegedly embezzled funds from online fashion retailer FashionValet, a company they co-founded, according to charges read to them on Thursday as reported by The Straits Times.
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Vivy Yusof seen in a photo on her Instagram account |
Vivy and Fadzarudin, both 36, are charged with criminal breach of trust and face up to 20 years in prison. They have been released on bail and required to submit their passport to the court.
Under Malaysia’s civil law, Fadzarudin could face additional punishment in the form of caning if found guilty.
FashionValet’s investors included Malaysia’s sovereign wealth fund Khazanah Nasional and state-owned asset manager Permodalan Nasional Berhad (PNB).
The two investors claimed to have lost 93% of the MYR47 million they poured into FashionValet’s e-commerce platform six years ago, according to the South China Morning Post.
FashionValet was established in 2010 and became one of Malaysia’s leading e-commerce platforms. But in 2022, Vivy and Fadzarudin shut down the platform amid rising competition and Covid-19 challenges.
They took responsibility for the failure of the platform in a public apology and resigned from their executive positions at the company.
“We take full responsibility for the failure of the investment … We are disappointed in ourselves and regretful that it has come to this … we are very sorry for the controversy this has caused Khazanah and PNB,” read the statement.
Vivy has 1.8 million followers on Instagram and has been listed in Forbes’ 30 under 30 Asia list. She has also received awards for being a prominent young entrepreneur.
Even while her company was reporting losses, Vivy often portrayed a lavish lifestyle on social media with photos of expensive bags and shoes, which sparked controversy among Malaysian internet users who often refer to her with the hashtag #crazybaglady.
