- Taiwan Police have arrested 14 people involving a $5.41 million cryptocurrency scam.
- The scam was run by a local businessman who lured especially men by putting beautiful pictures of women on the website.
Taiwan Police Administration has arrested 14 people for running a $5.41 million (150 million new Taiwan Dollars) investment scam from last year. The scam involved more than 100 cryptocurrency investors.
Kuo Yu-Chih, the CIB investigator, informed that the scam was led by a local businessman Chen. He ran the operation on social media platforms.
Chen is also the founder of a Taipei-based Azure Crypto Company platform that offers various investment services including cryptocurrency transactions. The investigator explained that Chen and his staff set up websites that used pictures of beautiful women to lure mainly male victims. Many were on the verge of retirement with substantial savings.
As per the Criminal Investigation Bureau (CIB) report, the suspect has been charged with fraud, money wandering, and breaches of the Organized Crime Prevention Act. As per Kuo, Chen had promised high returns on cryptocurrencies like Ether, Tether and Tron. Chen had introduced himself as a financial advisor specialising in crypto mining to the victims.
CIB warns victims
After receiving the complaints from one of the victims, the CIB took the charge and started investigating. They started monitoring the firm’s activities. The victim who complained to CIB has invested around $1.5 million (over 29 million New Taiwan Dollars).
After many months of investigation, the CIB raided the office and the residences of Chen and his associates.
SEC advises investors
In the wake of a growing number of scams across the works, the Securities and Exchange Commission of the United States has published a new investment alert related to investment scams. The rising popularity of the crypto ecosystem has led to an increase in the number of scams across the world. The SEC has also acknowledged the fear of missing out on the investors in this mad run.
The SEC has advised the investors to weigh the risks and be on the lookout for a possible scam before investing. The Chairman of FCA, Charles Randell gave warnings especially to the young investors to be cautious of the crypto internet scams. For the fear of missing out, these investors invest money with little or no knowledge of the risk involved in the token which is not even currency.