According to reports published in the Chinese language newspaper China Times, Taiwan police on August 20 charged two suspects who scammed investors out of NT$1 billion i.e. US$30.6 million. The report claims that the Criminal Investigation Bureau in Taipei they received a number of complaints of fraud from the scammed people.
The police believe that Taiwanese users of Hong Kong-based Bitcoin trading platform Mycoin, which was shut down in February by Hong Kong authorities for similar reasons were complaining about the two fraudsters. Now, the two Taiwanese suspects have been charged in connection with the website-related fraud.
According to the report, the two charged persons are: 47 year old Chen Yun-fei and 39 year old Lu Kuan-wei, who was the former president of the Taoyuan Junior Chamber of Commerce. Like any typical con, Chen and Lu held several events for investors convincing each one to spend NT$1.62 million (US$49,600) for 90 Bitcoins and an account with Mycoin’s parent company.
They had promised him that this would distribute 0.63 of a Bitcoin every day for a total value of NT$11,000 (US$337). The report also claims that the duo also conned the investors and told them that their investment would be returned to them after just four and a half months. They even got NT$14 million (US$428,700) from a 40 year old woman.
Tereachy Also Conned People in Taiwan Some Time Ago
As the bureau estimates that the combined amount that investors lost in the scheme exceeds NT$600 million (US$18.3 million), this is one of the biggest Bitcoin scam in the country. Another fraud scheme was perpetrated by furniture company Tereachy, which illegally pulled in over NT$400 million (US$12.3 million) over the past five years.
Tereachy had then told investors that Burj Al Arab, a luxury hotel in Dubai, was to set up hotels in Taiwan and was doing fundraising. They conned more than 700 people who started complaining once they realized that they were taken to ride. A total of 63 people from Tereachy were arrested by Kaohsiung police though later on.
Even the president Liang yu-li and CEO Yang Cheng-han were arrested in the Tereachy scam. Though Bitcoin scams are not new in the industry as in very short time of six years, it has seen several scamsters who looted the investors’ money systematically; the police are becoming proactive and taking the scammers to task now.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org