The suspects have been charged with fraud, money laundering, and violations of the Organized Crime Prevention Act, according to the Criminal Investigation Bureau.
Several people have been arrested by Taiwan’s police administration in connection with a $5.41 million (150 million New Taiwan dollars) investment fraud that involved more than 100 bitcoin investors over the course of the past year, according to reports.
Investigator Kuo Yu-chih of the Central Investigation Bureau (CIB) stated that the scam was orchestrated by a local businessman named Chen, who conducted the operation through social media platforms.
Chen was also rumoured to be the owner of Azure Crypto Co, a Taipei-based platform that provided a variety of investment services, including bitcoin transactions. He went on to explain:
“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.”
Following up on a story published by the Taipei Times, the Criminal Investigation Bureau (CIB) has charged the suspects with fraud, money laundering, and violations of the Organized Crime Prevention Act, according to the publication.
The scammers, according to Kuo, offered significant returns on cryptocurrencies such as Ether (ETH), Tron (TRX), and Tether (USDT) while posing as financial counsellors who specialized in cryptocurrency mining.
After receiving reports from one of the victims, who had invested roughly $1.5 million, the CIB began monitoring the firm’s actions (over 29 million New Taiwan dollars). Following several months of investigation, the CIB executed a raid on the company’s headquarters as well as the homes of Chen and his accomplices.
The Securities and Exchange Commission of the United States has issued a new investor notice regarding investment frauds, citing an increase in the number of scams being perpetrated around the world.
According to the SEC, the “increasing popularity” of the cryptocurrency ecosystem is the primary reason for frauds and vulnerabilities. The Securities and Exchange Commission (SEC) has acknowledged investors’ attitude behind the fear of losing out and has recommended them to balance the risks and be on the alert for a possible scam before investing.