Taiwan police arrest 14 suspects for defrauding over 100 crypto investors

Taiwan police say they arrested fourteen individuals final yr for a $ 5.41 million (new Taiwan $ 150 million) funding fraud involving greater than 100 investors.

CIB investigator Kuo Yu-chih stated the fraud was led by a neighborhood businessman named Chen, who runs operations on social media platforms. Chen can also be stated to function Azure Crypto Co, a Taipei-based platform that gives numerous funding providers, together with cryptocurrency exchanges. He defined:

“Chen and his coworkers have set up websites and allegedly used photos of beautiful women to attract mostly male victims, many of whom have retired in high-profile numbers – substantial savings.”

According to a report within the Taipei Times, the Criminal Investigation Bureau (CIB) has charged the suspects with fraud, cash laundering and violations of the organized crime prevention legislation.

According to Kuo, Chen and his staff of scammers have promised excessive returns on cryptocurrencies like Ether (ETH), Tron (TRX) and Tether (USDT) whereas presenting themselves as a monetary advisor specializing in cryptocurrency mining.

CIB started monitoring the corporate’s operations after a criticism was obtained from one of many victims who invested practically $ 1.5 million (greater than NT $ 29 million in new ones). After months of investigation, the CIB searched the corporate constructing and the whereabouts of Chen and his staff.

Related: US SEC points new investor warning of cryptocurrency funding fraud

Citing a rising variety of scams all over the world, the US Securities and Exchange Commission (SEC) has issued a brand new investor warning concerning funding fraud.

The SEC says the principle purpose for fraud and mining is “the growing popularity of the cryptocurrency ecosystem.” Recognizing the investor sentiment behind the concern of lacking out, the SEC suggested investors to weigh the dangers and concentrate on potential scams earlier than investing.

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