• Taiwan Police Apprehend 14 Suspects in $5.4 Million Crypto Scam

  • Taiwanese police arrested 14 people who were allegedly involved in a cryptocurrency investment scam. Over the last year, this scam has defrauded over 100 people out of approximately NT$150 million (US$5.41 million). A Taiwanese news outlet, broke the story on Monday.

    The Criminal Investigation Bureau (CIB) has charged the 14 suspects, according to the report. Fraud, money laundering, and violations of the Organized Crime Prevention Act are among the charges.

    This is just one of a growing number of cryptocurrency scams that have occurred recently.

    Taiwan Suspects Accused of Crimes

    According to CIB investigator Kuo Yu-chih, the scheme was allegedly led by a Taiwanese businessman named Chen. On social media, Chen promoted cryptocurrency investment. He was also said to be the CEO of Azure Crypto Co, a Taipei-based platform that provided various investment services, including cryptocurrency 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 high investment returns through blockchain technology.

    “Chen and his staff allegedly set up Web sites and used photographs of pretty women to attract primarily male victims, many of whom were in retirement with significant savings,” he said.

    According to the report, the victims were drawn in by the attractive images on the websites. Chen and his team pretended to be women in order to persuade victims to invest in the cryptocurrency scheme. They also presented themselves as financial advisers specializing in cryptocurrency mining, according to the Taiwan investigator.

    According to the bureau, investigators seized records containing information on more than 100 people involved in the scam. After receiving complaints from one of the victims, the CIB began monitoring the firm’s activities and online transactions. The individual suffered the greatest loss because they had invested nearly $1.5 million (over 29 million New Taiwan dollars) over a two-month period. According to the CIB, the man stated that after an initial investment, Azure Crypto promised him earnings, prompting him to increase his investment. After months of investigation, the CIB raided the company office as well as Chen and his associates’ homes.

    Scams Similar to Cryptocurrency

    Similar cryptocurrency scams have been reported all over the world. Last month, UK police seized $22.25 million in cryptocurrency from the operators of an international cryptocurrency scam. Similarly, in the United States, a former BitConnect promoter was busted running a $2 billion crypto scheme. This was the largest cryptocurrency scam ever prosecuted.

    The Securities and Exchange Commission of the United States recently issued a new investor alert regarding investment scams. According to the SEC, the main reason for scams and exploits is the crypto ecosystem’s “rising popularity.”

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