Around fifteen suspects have got arrested in Taipai as they were indulged in a suspected Taiwan cryptocurrency scam. The scam is worth $8 million. The scam targeted IBCoin cryptocurrency which was used to slice investors from their cash in Taiwan.
Taiwan’s Criminal Investigation Bureau revealed that they had arrested around fifteen suspects on Saturday who may be a part of such alleged scam in which more than thirty investors were got affected and scammed for a value more than NT$250 million (around $8.15 million US Dollars.)
The crypto market in 2018 was full of scams and alleged activities thereby making it the worst year in the history of the crypto industry. Overall around $3 billion of loss has been encountered in the crypto industry in scams. This current crypto related fraud of Taipai is one of the largest scams that took place during this year in Asia and is the talk of the town currently.
In a press conference held by the CIB’s Investigation Corps chief, Li Chi-hsun, the Taiwan Focus news outlet reported claimed that the case is still in its initial stage and nothing concrete is out yet.
During the press conference, Li stated that around fifteen suspects who came into notice during the two raids executed on Jan 9 and Jan 17 have been arrested. He also revealed that the suspected mastermind behind the entire scam has also been caught during the raids conducted. The mastermind was named as Lin.
According to local authorities, IBCoin is actually worthless. During the raids, the CIB seized NT$2.02 million in cash which is equivalent to USD 70,000. Few other items also got seized that includes luxury vehicles and most importantly the documents pertaining to the IBCoin Taiwan cryptocurrency scam plot.
Li has initially in 2017 used his contacts to purchase IBCoins for as little as NT$1.5 per coin. The scamsters had falsely cheated ultimate investors into buying the IBCoin for NT$50 – NT$100 per coin where they assured the investor that they would get a good amount of return on their investments which never materialized.
The scam group used the money they got via the scam to add a fantastic look to their lifestyle, in the process buying expensive luxury cars which they promoted globally through various social media accounts to attract more investors into the scheme. The investors got lured by such promises and lifestyle and invested their capital in the scheme by exchanging their cash for IBCoins with an intention to redeem in future with good returns which never happened.
The group has been charged under the fraud category. The CBI also stated that the arrested have now been handed over to the Taipei District Prosecutors Office who shall announce the date for the hearing and will take the decision accordingly.