Taipei Police Arrests Fifteen Suspects for Running Crypto Scam

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According to English-language local media Focus Taiwan, police in New Taipei, Taiwan have arrested fifteen suspects for running a digital currency scam that earned them millions of dollar.

As per the article, the chief of the Criminal Investigation Bureau (CIB) Li Chi-hsun stated at a press conference that fifteen suspects including the alleged leader surnamed Lin had been arrested in two separate raids carried out on Jan. 9 and Jan. 17.

The arrested suspects have been charged with Fraud, and the case has been handed over to the Taipei District Prosecutors Office. The group reportedly defrauded over 30 individuals in the country of around NT$250 million (approx. $8.16 million).

Focus Taiwan reports, the suspects reportedly promoted IBCoin, an Ethereum ERC20 token intending to be a method of payment for the adult entertainment industry, as per its promotional material. The fraudsters also publicized the scheme on Facebook, sharing pictures of expensive cars and luxurious lifestyles to attract new victims.

The article describes that as per CIB, Lin bought the tokens at a price of NT$1.5 (equivalent to less than $0.05) per unit in 2017. Lin then purportedly asked his collaborators to sell the tokens at NT$50-NT$100 ($1.63-$3.27) per unit and assure high returns.

As per the report, the CIB stated that no victim has ever noticed any return on their investment and the token has no real value since “there are presently no known companies that trade or deal in IBCoins.”

As reported earlier, seven people who reportedly managed a fraudulent cryptocurrency investment scheme have been indicted in Taiwan. As per a report, citing local prosecutors, the defendants were accused with the violation of Taiwan’s Banking and Multi-Level Marketing Supervision acts.