Taiwanese Authorities Charge Seven Bitcoin Ponzi Scheme Organizers

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The Taiwanese authorities have officially pressed charges against the seven fraudsters who were arrested in June last year for allegedly running a bitcoin-powered Ponzi scheme, reported local news source Focus Taiwan on January 18, 2019.

Multiple Banking Laws Violated

Per sources close to the matter, the Taichung District Prosecutors Office has indicted seven residents for allegedly organizing a cryptocurrency Ponzi scheme that according to data gathered by the nation’s Investigation Bureau, which is under the remit of the Ministry of Justice, generated about USD 51 million from more than 1,000 investors.

Among the seven criminals is Lin, a 47-year old Taiwanese man who allegedly opened an office in Taichung’s West District and solicited investments from locals as well as people living in Shanghai, Fuzhou and Wuxi cities, promising them a mouth-watering 355 percent returns on investment within a year.

However, participants started suspecting there was a problem with the system in February 2018 when their monthly ROI started becoming inconsistent before the organizers of the scam scheme finally stopped paying investors in April last year.

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Reportedly, after carrying out thorough investigations, including examination of witness testimonies, bank transactions and other relevant pieces of evidence, the perpetrators of the crime have been charged with violating the Taiwanese Banking, and Multi-Level Marketing Supervision acts.

At press time (Jan. 21, 2019), the exact penalties and punishment the bad actors will face are yet to be revealed.

Taiwan Betting on Cryptos Despite all Odds

While China has since banned all-things initial coin offerings (ICOs) and cryptocurrency trading, Taiwan has exhibited a more liberal stance towards the nascent digital asset class in recent times.

In April 2018, BTCManager informed that the Governor of the Central Bank of Taiwan, Yang Chin-long had urged the nation to formulate robust anti-money laundering regulations to curb the activities of rogue actors while also supporting the growth of the nation’s crypto markets.

In related news, in July 2018, BTCManager informed Taiwan was on the verge of getting its first Taiwanese dollar-backed stablecoin through a local tech firm named Green World Fintech Service.