BY DAYO ADESULU
No fewer than fourteen cryptocurrency scammers promoting Ethereum, Tronix and Tether investments on social media promising high yield have been arrested in Taiwan.
Taiwan Criminal Investigation Bureau, said the suspects have used their scheme to defraud investors of millions of dollars.
The CIB explained that the crypto scammers allegedly defrauded more than 100 people out of about NT$150 million (US$5.41 million) over the past year.
Taipei Times reported Sunday that the suspects now face charges of fraud, money laundering, and breaches of the country’s Organized Crime Prevention Act.
Bitcoin.com reports that Kuo Yu-chih, the CIB investigator in charge of the case, explained that a businessman with the last name Chen is believed to be the mastermind behind the fraudulent crypto scheme.
He added that the scheme focused on cryptocurrencies Ethereum, Tronix, and Tether. Chen also led the Taipei-based Azure Crypto Co., which offered cryptocurrency and other investment services.
The investigator detailed that Chen promoted crypto investments on social media, promising high earnings. He elaborated:
Chen and his staff set up websites and allegedly used photographs of pretty women to attract mainly male victims, many of whom were in retirement with substantial savings.
The attractive images drew the victims to the websites where they were persuaded to invest via interactions with whom they believed to be the attractive women, Kuo said. Chen and his staff claimed to be financial advisers specializing in cryptocurrency mining.
The bureau revealed that investigators seized ledgers containing the details of more than 100 people who invested in the scheme.
Prior to the arrests, the police monitored the scheme’s activities and online transactions for several months after receiving complaints. The bureau subsequently conducted raids late last month at the company’s office and the residences of Chen and his staff.