Taiwanese police detained 14 persons who were reportedly involved in a bitcoin investment fraud. Over the last year, this scam has duped over 100 people out of around NT$150 million (US$5.41 million). The Taipei Times, a Taiwanese news outlet, broke the story on Monday.
The Criminal Investigation Bureau (CIB) has charged the 14 individuals, according to the report. Fraud, money laundering, and violations of the Organized Crime Prevention Act are among the charges. This is just one of the rising number of cryptocurrency frauds that have occurred recently.
According to CIB investigator Kuo Yu-chih, the scam was purportedly directed by a Taiwanese businessman named Chen. On social media, Chen pushed cryptocurrency investing. He was also said to be the CEO of Azure Crypto Co, a Taipei-based platform that provided a variety of investment services, including bitcoin transactions.
Chen’s investment schemes, according to Kuo, were centered on cryptocurrencies such as Ethereum, Tronix, and Tether. He went on to say that Chen promised great investment returns through blockchain technology.
“Chen and his staff set up Web sites, and allegedly used photographs of pretty women to attract mainly male victims, many of whom were in retirement with substantial savings,”
According to the investigation, the victims were drawn in by the enticing photographs on the websites. Chen and his team pretended to be ladies in order to get victims to invest in the cryptocurrency scheme. They also portrayed themselves as financial counselors specializing in cryptocurrency mining, according to the Taiwan investigator.
According to the bureau, investigators collected records including information on more than 100 people involved in the scheme. After receiving reports from one of the victims, the CIB began monitoring the firm’s activities and internet transactions. The individual suffered the greatest loss because they had invested approximately $1.5 million (about 29 million New Taiwan dollars) during a two-month period. According to the CIB, the guy stated that after an initial investment, Azure Crypto promised him earnings, prompting him to increase his investment. After months of inquiry, the CIB raided the firm office as well as Chen and his associates’ homes.
Scams Similar to Cryptocurrency
Similar cryptocurrency scams have been reported all across the world. Last month, UK authorities seized $22.25 million in cryptocurrencies from the organisers of an international cryptocurrency scam. Similarly, in the United States, a former BitConnect promoter was busted conducting a $2 billion crypto fraud. This was the greatest cryptocurrency scam ever prosecuted.
The Securities and Exchange Commission of the United States just issued a new investor alert regarding investment frauds. According to the SEC, the main reason for frauds and exploits is the crypto ecosystem’s “growing popularity.”
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