Per information from local news outlet Focus Taiwan seven Bitcoin crypto scammers who defrauded investors over $51 million have been indicted in a court in Taiwan. Led by 47-year old man formally known as Lin the ring was able to lure investors into their web and walk away with their investments. Over 1000 investors lost cash in the scheme. In court, the scammers will have to answer to charges of violating Taiwan’s Banking and Multi-Level Marketing Supervision acts. After careful securitizing the evidence before them, the prosecutors found out the seven were operating a fraudulent crypto investment vehicle and in the process broke various business laws and violated multiple banking laws.
Opened an Office
To cast his net wider, the 47-year-old ring leader set up an office in the West District Taichung to lure in investors from China and Taiwan. According to files presented in court by prosecutors from Taichung District Lin and his counterparts got investors from Fujian Province in Pingtan County, Wuxi Shanghai and Fuzhou city. Moreover according to prosecutor’s documents investors were promised returns amounting to 335% annually from their initial investments. From such a deal many fell into their web with 1000 investors coming from only Taiwan. According to the Ministry of Justice investigations bureau, the group was active from October 2016. And before their web was closed down, they had $51 million in their pockets. Investor’s received their returns until February 2018 when everything came to an end. They were later on arrested on June 13 and now are facing criminal charges in court. To arrive at this point, prosecutors had to go through various pieces of evidence, bank accounts and witness testimonies to gather evidence.
Digital coins are creating opportunities for industry players but at the same are opening channels for money laundering. In a bid to curb the misuse of Bitcoin to launder money the Taiwan government passed the Money Laundering Control Act and the Terrorism Financing Prevention Act. Through the act, anyone found to be guilty will be charged. For the Taiwan government, their primary goal is to strengthen its laws and give authorities power to prosecute those using cryptocurrency to commit a crime. Unlike their counterparts in South Korea and China who placed a complete ban on crypto, Taiwan is opting to strengthen its laws which in turn tightens laws in place manning its crypto and banking sector.