Cryptocurrency Scammers Arrested In Taiwan By Authorities

 

The authorities in New Taipei, Taiwan, have recently busted a cryptocurrency scam. They have arrested fifteen suspects for being involved in a cryptocurrency scam that made in millions. This comes as a latest in the series of cryptocurrency scams that have taken place in Taiwan.

The case is being handled by the Taipei District Prosecutors Office and the arrested suspects have been  preliminarily charged with fraud. The fifteen suspects who have been arrested reportedly defrauded over 30 people in the country of nearly NT$250 million (equivalent to about $8.16 million).

The chief of the Criminal Investigation Bureau (CIB) Li Chi-hsun said at a press conference that two separate raids we’re conducted to arrest the fifteen suspects — including their alleged leader, surnamed Lin. The raids were conducted on the 9th and 17th Jan.

The fraudsters allegedly promoted IBCoin, which is an Ethereum (ETH) ERC20 token, and sold it as a mode of payment for the adult entertainment industry. Their promotional material clearly depicts their intention of marketing the token as a currency for the adult entertainment industry.

The group was also active on Facebook, where they uploaded pictures of expensive cars and luxury items to promote the cash flow in the trade and lure new unsuspecting victims. The local Taiwan reports have described how the group used Facebook to trap new people.

According to reports, Lin purchased the tokens at a price of NT$1.5 (equivalent to less than $0.05) per unit in 2017 and then he sold those tokens for NT$50-NT$100 ($1.63-$3.27) per unit, with the promise of high returns.

However, no such returns were realised and the authorities said that victims did not get any of the returns that they were promised. The token had no actual value because no “there are currently no known companies that trade or deal in IBCoins.” Which is why, the tokens were rendered completely useless.