$8 Million Crypto Scam Operators Arrested In Taiwan

| Publish date: 01/28/2019
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It cannot be denied that cryptocurrency scams nothing new and, more importantly, they tend to exist on varying scales. Some do this activity by hacking into digital currency wallets while others try to run massive scam rings. Apparently, this type of exploit had just taken place Taiwan.

The Crypto Scam Group

According to the official report, there are at least 15 members of a cryptocurrency scam ring that were arrested in the country. Li Chi-hsun, the chief of the Criminal Investigation Bureau (CIB), said that the arrest happened in two separate roads on the 9th and 17th of the month.

All members connected to the aforementioned group were arrested. And as far as the number of victims is concerned, it has reached 30. Also, the hackers managed to steal at least $8.16 million-worth of cryptos. The case is currently being taken care by the Taipei District Prosecutors Office, which is in charge in performing further investigation.

The police said that the group performed a scheme that promoted IBCoin, which is an Ethereum ERC20 token meant to be used as payments in the adult industry. Interestingly, the coin was being promoted heavily on social media sites and their posts, in particular, suggested them living in lavish lifestyle. This kind of lifestyle, according to the authorities, is what lured victims into the scheme.

The leader of the group named Lin reportedly bought the coins sometime in 2017. From there, he and his members tried to market the coins at a much higher price, convincing them about a high return on their investment.

Many False Flags

It holds true that a handful of methods to carry out crypto schemes exist. Unfortunately, most of their success largely depends on the misinformation and/or ignorance of all potential victims. For instance, it is interesting to note that the coin itself is not allowed in Taiwan. But for some reason, the group was able to sell it. Still, the victims were completely unaware of it and, thus, were easily taken advantage of.

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Another thing to note is that all coins sold by the exploiters were done through the basis of “getting rich quick” scheme. Many are indeed misinformed when it comes to digital currencies. Hence, some people are easily lured into promises that are actually false flags.

A lot of experts believe that there is a need for cryptocurrency education, which is something that could benefit the general public. It is not primarily aimed at discouraging people from investing, but rather helping them avoid the possibility of falling victim to these crypto scam schemes.

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