IBCoin Promoters Arrested in Taiwan For $8 Million Fraud

Wilfred Michael 

Wilfred Michael

News reporter

28 January 2019,
00:21
IBCoin Promoters Arrested in Taiwan For $8 Million Fraud

The masterminds behind IBCoin, a fake cryptocurrency allegedly used to dupe over thirty people in Taiwan of up to $8 million, are now under the custody of the Taiwanese Criminal Investigation Bureau (CIB).

Focus Taiwan reports that the men behind the crime are fifteen in number with the leader of the gang going by the surname - Lin. The men were arrested after a police raid at their hideouts on January 9 and January 17 respectively.

Nature of the IBCoin Crime

  • The arrested suspects promoted an ICO in which they claimed that IBCoin token would be used to serve the adult entertainment industry as a highly anonymous cryptocurrency.

  • They promoted the ICO on Facebook and other social media handles, featuring pictures of luxurious cars and expensive lifestyle to lure their victims

  • The leader, Lin purchased the IBCoin tokens at  NT$1.5 (less than $0.05 per token) but asked his allies to sell it for NT$50-100 (approximately $1.63-$3.27) to investors.

  • Investors were promised high returns on the coins if they held it for an extended period, but none of them have received a penny since 2017. The report adds that “there are currently no known companies that trade or deal in IBCoins.”

  • Thirty people reportedly fell victim to the suspect’s scheme.

The Taipei District Prosecutors Office is now expected to judge the case of the fifteen suspects who were charged with fraud, by the CIB.

The latest incidence in Taiwan adds to the growing number of crimes around cryptocurrencies that we reported this week.

Earlier this week, we reported that Europol arrested an $11 million crypto theft suspect in the U.K while in Israel, Stox Founder, Moshe Hogeg was charged for $4.6 million fraud by a Chinese investor.

Local peer-to-peer exchange, LocalBitcoins was also hacked this weekend, although activities are now back to normal on the platform.

 

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